Problem 1: If tax revenues equal $100 billion, government spending equals $130 billion, and the government borrows $25 billion, how much do you expect the money supply to increase given the government constraint?
Problem 2: Suppose labor's share of GDP is 70 percent and capital's is 30 percent, real GDP is growing at a rate of 4 percent a year, the labor force is growing at 2 percent, and the capital stock is growing at 3 percent. What is the growth rate of total factor productivity?
Problem 3: What is the growth rate for an economy in which TFP grows at a rate of 3 percent per year, the size of the labor force is unchanged, the capital stock grows at a rate of 2 percent per year, and labor and capital each account for 50 percent of output?