Let the Macro system be characterized by the following:

A = 10$ : L1 = 1L Q = 16$

1. Set up the Macro Transactions Table and arrive at the Net Product.

2. What are the three productivity parameters? Define them and provide for you numeric example. Draw the economy in factor productivity space.

3. Set up the equations for the income and output account in general using the net product T-table. Be sure to especially give the formulas for the profit rate and growth rate

4. Let the wage share = = 1/3. Provide the income account equations and draw the wage-profit schedule.

5. Map the system between accounts the savings propensity out of profit revenue = 3/4 and the savings propensity out of wage revenue = 0. Provide the output account equations and draw the consumption-growth schedule.

6. Repeat Question 5 only now with a saving propensity out of profit of = and put in the same graph.

7. Combine the wage-profit schedule with the consumption-growth schedule and draw in the two-quadrant graph and identify all values.