401ps2answers-10 - ECON 401A Autumn 2010 ANSWERS FOR...

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ECON 401A Hartman Autumn 2010 ANSWERS FOR PROBLEM SET II 1.a. 42 75 55 M YT G P  and 81 15 50 5 50 M rT G P If G increases and T , M , and P do not change, then 10 Y G and 1 0 5 r G  . If G and T increase by the same amount with no change in M and P, then (/ ) 0 1 0 5 dG dT dX dMP dY dX     and ) 0 2 0 50 dG dT dX dr dX . If M increases with no change in P , G , and T , then 2 0 5 Y MP and 1 0 50 r . 1.b. * 100 Y and * 15% r 1.c. 25 N 1.d. The marginal product of labor is 2. 4 W . Unemployment is 15. 1.e. 2.5298 W . 2. 0 0 ' 0 (1 ) dT dG dP I Y P LL M CI iY    , 0 0 1 0 ) dT dG dP C r P M ) 0 ) 0 ) dT dG dX L C Y i X , ) 0 ) 0 ) dT dG dX L C r Y X  3.a. 0 0 1( 1 ) 0 d dG CIGY dr C dY I   
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This note was uploaded on 04/04/2011 for the course ECON 401 taught by Professor Staff during the Spring '08 term at University of Washington.

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