su11_3102_HW2

su11_3102_HW2 - University of Minnesota Department of...

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University of Minnesota Department of Economics Econ 3102: Intermediate Macroeconomics Homework #2 This problem set is due on Monday, June 27th , at the beginning of class. The maximum score is 105 points. Be sure to review the syllabus for details about problem sets and their grading! Feel free to questions about the problem set. Note that some Exercises have several parts. Be sure to answer every question thoroughly for full credit! 1 Problems (55 points) Exercise 1 (20 points) Consider a simple one-period, closed-economy model where the representative consumer has utility function U ( C;‘ ) = C 1 = 2 1 = 2 and has h has technology given by Y = zK 1 = 3 N 2 = 3 . There is a government that sets its expenditure level at a value G & 0 . (a) Carefully (b) Find the CE allocation
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su11_3102_HW2 - University of Minnesota Department of...

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