University of Toronto
Macroeconomics, Theory and policy
Masoud Anjomshoa
Economics Department
Assignment #1
Math Review
1 In following questions, variables C, G, and Z should be put on the vertical axis in your graphs, while variable
Y should be presented on the horizontal axis.
a
Draw the line C=100 + 0.8Y.
b Draw the line Y=1200.
Find the intersection of this line and the line in part (a).
c
Draw the line G=100. (Don’t forget G is on the vertical axis).
Find line Z=G+C, and draw it. (Don’t
forget E is on the vertical axis).
d Draw the line Z=Y. (Don’t forget Z is on the vertical axis).
What is the slope of this line? Find the
intersection of this line and the line Z = G+C, in part c.
e
Suppose G increases and becomes G =200.
Repeat parts (c) and (d).
What happens to the line Z
compare to the part (c).
2 In following questions, variables R should be put on the vertical axis in your graphs, while variable M should
be presented on horizontal axis.
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 Spring '10
 MasoudAnjamshoa
 Macroeconomics, 3%, Euclidean geometry, vertical axis, Masoud Anjomshoa

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