Econ102 Introduction to Macroeconomics Bilkent Economics Spring 2014 Quiz II Fatma Ta¸sk¬n Refet S. Gürkaynak 1. (10 pts each) De…ne the following in a few sentences. Capital: Human capital: Convergence hypothesis: 2. (30 pts) When you studied the Korean and Turkish per capita GDP histories, what was the main stylized fact that you saw? What, in your opinion, explains this stylized fact? 3. (50 pts) Explain the main mechanism and insights of the Solow model in your words, without using equations. In a Solow world, can per capita output grow at steady state due to population growth? If so, what is the mechanism? If not, what else can provide steady state growth? 1
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