## Fall 2018 Econ 101b Exam: U.C. Berkeley

We expect that this will take you 90 minutes—but we will not kick you out after that time span... Open book, open devices, open internet—everything except conversing interactively with another Turing-Class entity... Do your work in your bluebook... Be calm: from your performance in the course so far, we are confident that you have (largely) got this...

Good luck!

Write your name, your section number, and your section leader on the front and at the top of the first page of your bluebook.

Make the first page of your bluebook an answer page for parts A and B so that we can quickly grade the exam—on that page write "A1:", "A2:", "A3:...", etc., and "B1:", "B2:", "B3:", etc., on successive rows of the page, and then write the answer you pick or the quantity you calculate next to each label...

### Solow Growth Model

We have the Solow Growth Model (SGM) system of equations:

$ \frac{d\left(L_t\right)}{dt} = nL_t $ :: labor-force growth equation

$ \frac{d\left(E_t\right)}{dt} = gE_t $ :: efficiency-of-labor growth equation

$ \frac{d\left(K_t\right)}{dt} = sY_t - \delta{K_t} $ :: capital-stock growth equation

$ Y_t = \left(K_t\right)^{\alpha}\left(L_tE_t\right)^{1-\alpha} $ :: production function

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