ps3_questions

ps3_questions - 14.02 Principles of Macroeconomics Problem...

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1 14.02 Principles of Macroeconomics Problem Set # 3, Questions Posted on Thursday, October 10, 2002, due on Thursday, October 17, 2002 You must staple a copy of this frontpage on your problem set. Remember to write down your name and MIT ID and to mark the recitation at which you want to receive the problem set once it is corrected. Name: __________________________________________________ MIT ID: __________________________________________________ 10AM Samer Haj-Yehia 9AM Indradeep Ghosh 11AM Samer Haj-Yehia 11AM Oscar Landerretche 12AM Samer Haj-Yehia 1PM Indradeep Ghosh 1PM Samer Haj-Yehia 1PM Verónica Rappoport 2PM Samer Haj-Yehia 2PM Verónica Rappoport 3PM Verónica Rappoport (Table is for corrector use only) 1 2 3 4 5 6 7 Total I II III 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. (6 points each, 30 points total) 1. Workers like inflation since it raises their wages. 2. Improvements in health that increase the elderly population, tend to increase the unemployment rate. 3. If the government increases G without altering the supply of money, the amount of money demanded in equilibrium varies since both Y and i change. 4. A monetary contraction cannot affect the public budget since it is not a
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ps3_questions - 14.02 Principles of Macroeconomics Problem...

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