4. XYZ company has a Cobb-Douglas production function, \( Q = L^{0.5}K^{0.5} \). Use \( w \) and \( r \) to denote the price of the two inputs, \( L \) and \( K \), respectively. Given a required output level \( \bar{Q} \), compute XYZ's conditional factor demand, \( L(w,r;\bar{Q}) \) and \( K(w,r;\bar{Q}) \). (10%)

5. Assume that there are only two people in society. The demand curve for person \( A \) for mosquito control is given by \( q{A} = 100 - P \). For person \( B \), the demand curve for mosquito control is given by \( q{B} = 200 - P \). This activity could be produced at a constant marginal cost of $50 per unit. a. What is the optimal level of mosquito control? (5%)

b. Now, suppose mosquito control is a public good. Once it is produced everyone can benefit from it. What would be the optimal level of this activity? (5%)

6. The country of ABC has produced the following quantity of gauges and potatoes, with the price of each listed in dollar terms. | | Year | | | | | --- | --- | --- | --- | --- | | | 1 | | 2 | | | | Quantity | Price | Quantity | Price | | Gauges | 8000 | $4 | 10,000 | $3 | | Potatoes | 6000 | $8 | 5000 | $14 | a. Using Year 1 as the base year, what is the growth rate of real GDP from Year 1 to Year 2? (6%)

b. Based on the GDP deflator, what is the inflation rate from Year 1 to Year 2? (6%)

7. Comment on the following statement and show what would happen in the long run if such advice were followed by the Central Bank: "The increase in the stock market has increased people's wealth. As a result, their consumption has increased, increasing aggregate demand and output. So the Central Bank needs to increase the money supply, since with higher income, people's demand for real money balances will be higher." (12%)

8. Consider the Solow model. Country A has a capital-labor ratio (k) that is initially twice as big as that of country B, but neither is yet in a steady state. Both countries have the same production function, $$f(k) = 6k^{1/2}$$. Country A has a 10% saving rate, 10% population growth rate, and 5% depreciation rate, while country B has a 20% saving rate, 10% population growth rate, and 20% depreciation rate.

a. Calculate the steady-state capital-labor ratio for each country. How does the initial capital-labor ratio affect your results? (6%)

b. Calculate output per worker and consumption per worker for each country. Which country has the highest output per worker? The highest consumption per worker? (6%)

9. Use the Keynesian IS-LM model with flexible exchange rates for this question. Describe the effects of contractionary fiscal policy by the domestic government on output, the real interest rate, and net exports in both the domestic and the foreign country. (14%)

115年 - 115 國立臺北大學_碩士班一般入學考試試題_金融與合作經營學系：經濟學#146932

115年 - 115 國立臺北大學_碩士班一般入學考試試題_自然資源與環境管理研究所：經濟學#146790

115年 - 115 國立臺北大學_碩士班一般入學考試試題_財政學系：經濟學#146671

115年 - [無官方正解]115 國立嘉義大學_碩士班招生考試試題_財務金融學系：經濟學#143920

114年 - 114 國立臺北大學_碩士班一般入學考試試題_財政學系：經濟學#147055

114年 - 114 國立臺北大學_碩士班一般入學考試試題_金融與合作經營學系：經濟學#147049

114年 - 114 國立臺北大學_碩士班一般入學考試試題_自然資源與環境管理研究所：經濟學#146762

114年 - [無官方正解]114 國立嘉義大學_碩士班招生考試試題_財務金融學系：經濟學#144017

114年 - 114 國立嘉義大學_轉學生招生考試試題_管理學院：經濟學#143769

114年 - [無官方正解]114 臺灣綜合大學系統_學士班轉學生考試試題:經濟學#138281