1.In the long run equilibrium, assume that the long-run population growth rate is 2% and the long run rate of A is 0% g=0, calculate the long-run equilibrium growth rate of Y, Y/L, K, K/L AND real wage W/P.

2.Consider an economy described by the following equationsY=C+I+G where Y=5000 G = 1000 and T=1000, C=250+0.75(Y-T), I=1000. In this economy compute the private savings public savings national savings, find the equilibrium interest rate.

3.Describe the functions of money

4.Use Keynesian model and diagrams to describe the impact of an increase in taxes.

5.Describe the IS-LM model

6.How does a system accommodate change?

7.Explain the difference between perfect competition and oligopoly.

8.Illustrate a business cycle

9.A college cost $20000 per year. The job you give up to go to college pays $30 000 a year. What is the opportunity cost of going to the college?

10.A price change would do what to a perfectly elastic demand curve?