Agrawal Handout 4 Fall 05 100B 1 ECON 100B Midterm 1 Review Sheet David Agrawal The following are some concepts that I think are important to master. They may or may not be important for the exam. In addition, there are many important concepts that I have left off of this list. Thus, this list should only serve as a primitive outline. You should use the Chapter section headers as a more comprehensive outline and should also consul your section and lecture notes. You should be able to find solutions mathematically when appropriate. Good luck! Chapter 1 What is a model? Endogenous vs. Exogenous Parameters Chapter 2 GDP Equation and Components Nominal vs. Real vs. Chain-Weighted How is GDP compared across countries? Chapter 3 Ratio Scale Growth rate formula(s) Average growth rates Properties of growth rates Rule of 70 Chapter 4 CRS/DRS/IRS Equations in the model of production MPK/MPL How is the model solved? TFP Chapter 5 Equations and assumptions of Solow What is the solution to the Solow model? Steady State What do the results of Solow imply? Shocking (experimenting with) the Solow model Transition Dynamics Chapter 6 Non-rivalry and problems with perfect competition Equations in the Romer Model What is the solution to the Romer model?Agrawal Handout 4 Fall 05 100B 2 Balanced growth path What do the results of Romer imply? Shocking (experimenting with) the Romer model Equations of the combined Romer and Solow Model What is the solution of the combined model? What do the results of Solow and Romer imply? Growth accounting Chapter 7 The exam will only cover up to what is done in class (if any) on Tuesday before the