Conceptual Questions1. Find the following information on the current US economy (get the most recent data you can -this website will probably be helpful: https://fred.stlouisfed.org)a. The unemployment rateb. The labor force participation ratec. The current level of nominal GDPd. The most recent growth rate of real GDPe. Ination (CPI)f. Government debt as a percentage of GDP2. Explain Robert Solow's ndings in his decomposition of growth into labor, capital and technology.In particular, discuss the role of \Total Factor Productivity" (TFP) in Solow's ndings. Explainsome ways Solow's model has been extended to make it more empirically relevant (as discussedin the slides and the reading: \The growth of growth theory."Analytical Questions1. An economy produces with the production function Y = 10K1=2L1=2. There is no populationgrowth or technological progress. The depreciation rate is 10% and the saving rate is 60%a. Show that the production function is constant returns to scale.b. Show that the function can be written y = 10k1=2 where y = YL and k = KLc. Assume kt = 3025. Find kt+1, kt+2, and kt+3d. Now assume kt = 4225. Again nd kt+1, kt+2, and kt+3e. Based on your answers above, without directly solving for the steady state, provide a rangethat the steady state of capital must fall within.f. Find the exact steady state capital per worker. Also nd output per worker and consumptionper worker at the steady state.g. Find the steady state capital per worker that maximizes consumption. What is consumptionat this level?h. Assume the economy starts in the steady state corresponding to s = 0:6. If it adjusts itssavings to the optimal level (i.e. the level that maximizes consumption in the steady state),what is consumption per worker immediately after the change in savings (i.e. before capitalchanges)? Draw a graph of consumption per worker over time as it adjusts to the new steadystate.i. Thanos snaps his ngers and half the labor force disappears. Draw a graph of output perworker and total output over time.2. An economy produces with the production function Y = F(K;L) = AK1=3L2=3. Populationgrows at 2% per year and A grows at 2% per year. The depreciation rate is 5% and the savingrate is 40%. The economy is in steady state.a. Dene A~ = A3=2. Show that the production function can be written as y~ = k~1=3 where~y = YA~Land ~k = K~AL. What is the growth rate of A~?b. What is the growth rate of each of the following in steady state: K~AL, YA~L, A~L, Y , YL , KY ,C (hint: use the approximation that if X grows at gx and Y grows at gy then XY grows atgx + gy)c. At what rate do wages and the capital rental rate grow? (hint: wage=MPL and rentalrate=MPK)d. Find the steady state value of capital per eective workere. If the economy wants to maximize consumption per eective worker, should it save more orless? Find the consumption maximizing saving rate.f. In 2014, L=1000 and A=9. Find total output in 2014 and 2015 (hint: for 2015 use thegrowth rate you derived in part b for total output)g. The growth rate of population falls to 0. What is the new steady state? Show the changeon a graph with investment and depreciation on the y axis and capital on the x axis (i.e. theusual steady state graph). Also show the change over time of capital per eective worker,capital per worker, and aggregate capital. In your graph, be sure to capture the old steadystate, transition, and new steady state (hint: the slope of the line should be equal to thegrowth rate at each point).h. Another country uses the same production function, has the same level of total capital, butonly has 810 workers. If there is free mobility across countries (so wage rates are equalized),what can we say about the level of technology (A) in the other country (Which country hasa higher level of technology? You do not need to solve for the actual level, but you can if ithelps)2

It is a common fact that many lottery winners are “broke” sooner than later. If you won a $1,000,000 lottery, would you want to collect the lump sum winnings today or receive the monies over time? How does your decision influence the ultimate amount of cash you will collect? Explain the TVM factors you would consider as you make this decision.  

Answer each question with a total 500 words. Paper needs to be a total of 1500. APA style with in-text citations and reference page at the end for all sources.1.The most common example of a market with the perfect competition is agriculture. How could farm subsidies distort a model of perfect competition? Explain.2.American corn farmers receive billions of dollars in taxpayer subsidies each year. These subsidies allow them to sell their grain at prices below what it costs to produce it, particularly for export markets. How do U.S. corn subsidies hurt Mexican farmers?3.Summarize the arguments both in favor of and against eliminating farm subsidies. After your evaluation, where do you stand on this issue and why?Helpful links for info:http://grist.org/food/our-crazy-farm-subsidies-exp...http://www.bloomberg.com/graphics/2015-farm-bill/http://www.economist.com/news/united-states/216431...These first three selections are included within the Points of View Reference Center database which the CCBC library subscribes to and can be accessed through the following URL that can be pasted into a browser window.“Farm Subsidies: An Overview”Ford, A., & Flynn, S. I. (2019). Farm Subsidies: Overview. Points of View: Farm Subsidies, 1–3.“Point: Farm Subsidies Are no Longer Necessary”Lee, D., & English, M. (2019). Point: Farm Subsidies Are No Longer Necessary. Points of View: Farm Subsidies, 2.“Counterpoint: Farm Subsidies Are Needed for American Farmers”Goldmark, S. M., & Grant, R. A. (2019). Counterpoint: Farm Subsidies Are Needed For American Farmers. Points of View: Farm Subsidies, 3