Due at the beginning of class on November 8, 2007
Economics 200
Macroeconomic Theory
Problem Set 6
1. Consider an economy whose shortrun behavior is described by the equations
G œ #!! Þ&Ð] XÑ
XœÞ&]
M œ $!! "&!<
K œ "!!
œ ] #!!<
Q œ %!!
Tœ"
ˆ‰
Q
T
H
where all variables have the same meaning as in class.
(a)
Find the autonomous spending multiplier for this economy.
(5 points)
(b)
Define, and find the equation for, the IS curve.
(5 points)
(c)
Define, and find the equation for, the LM curve
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This note was uploaded on 04/26/2010 for the course ECON 101 taught by Professor Staff during the Spring '08 term at Vassar.
 Spring '08
 Staff
 Economics, Microeconomics

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