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ps2_questions - 14.02 Principles of Macroeconomics Problem...

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1 14.02 Principles of Macroeconomics Problem Set # 2, Questions Posted on Thursday, September 19, 2002, due on Thursday, September 26, 2002 You must staple a copy of this frontpage on your problem set. Remember to write down your TAs section name and recitation time, your name and MIT ID. Name: __________________________________________________ MIT ID: __________________________________________________ TA: __________________________________________________ (Table is for corrector use only) 1 2 3 4 5 Total Part I Part II (1-5) Part II (6-10) Part II (11-15) Grand Total
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2 Part I: True, False Questions. Decide whether each statement is true or false and justify your answer with a short argument. (5 points each, 25 points total) 1. If taxes are set proportional to income, T = tY , and t > 0, then the multiplier is larger. 2. A fiscal contraction must decrease consumption, output and investment. 3. A monetary expansion coupled with a fiscal expansion causes both output
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This note was uploaded on 11/29/2009 for the course 14 14.02 taught by Professor Geurrieri during the Fall '09 term at MIT.

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ps2_questions - 14.02 Principles of Macroeconomics Problem...

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