Econ 199 Assignment 1

Econ 199 Assignment 1 - Econ 199 Macroeconomic Theory I...

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Econ 199 Macroeconomic Theory I Assignment 1 (Chapter 2, &3) Due: in TA’s office hour, March 5th, 2009, Thursday 1. Label each of the following statement true, false, or uncertain. Explain briefly. a) The unemployment rate provides all the information economists need about the labor market. b) If the Japanese CPI is currently at 108, and the US CPI is at 104, then the Japanese rate of inflation is higher than the US rate of inflation. c) The rate of inflation computed using the CPI is identical to the rate of inflation computed using the GDP deflator. d) The largest component of GDP is investment. e) The propensity of consumption has to be positive, but it can take any positive value. f) An increase in the MPC leads to a decrease of output, since more goods is consumed and less is invested. 2. Question 3 of Chapter 2 in the textbook. 3. Question 4 of Chapter 2 in the textbook. 4. Question 4 of Chapter 3 in the textbook. 5. Question 5 of Chapter 3 in the textbook.
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Econ 199 Assignment 1 - Econ 199 Macroeconomic Theory I...

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