Due to Friday's exam, we will have extended OH this week. This week's schedule is:
W 12-1 and 3:30 - 5:00 Evans 508-7
Th 12-1 Evans 508-7
Starting next week, the usual schedule will resume:
W 12-1 Evans 508-7
F 10-11 Evans 508-7
Problem sets and solutions guides are again in the folders attached to the door of Evans 508-7.
In the 8am section, this question was left unanswered: What is an example of a Solow problem in which the time paths of K/EL, Y/EL, and C/EL do not all have the same shape?
Consider an economy that is in the steady-state, and then the savings rate suddenly increases. At the time of the shock, Y/EL and K/EL do not move, but C/EL jumps downward, because more output is now allocated to savings, and less toward consumption.
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