Econ110BW11 - Lec12 A - GR_ol (4)

# Econ110BW11 - Lec12 A - GR_ol (4) - Macroeconomics B Econ...

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Macroeconomics B Econ 110B – Winter 2011 Prof. Giacomo Rondina Lecture 12: Review Session ahead of Midterm

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Announcements Midterm Material Class Notes Online Lecture Notes (webct.ucsd.edu, folder “Lecture Notes”) Chapters 14 17 Problem Sets 1 to 3(a and b) Midterm Format Multiple Choice (20% of it) Short Answer Questions (all the rest) Closed book exam, no CC’s Calculator allowed 2 Expectations, Consumption and Investment (Ch. 16)
The Two Period Model and the Real Interest Rate Part B, Midterm Spring 2010 3 Expectations: the Basic Tools (Ch. 14) Today Future \$Y \$1500 \$3300 Price \$2.00 \$2.00 i 10% \$ \$3300 ( ) \$ \$ \$1500 \$4500 1 1 .10 Y a W Y i = + = + = + + 1 1 .10 ( ) 1 1.1 1 1 e i b r π + + + = = = + ( ) ( ) ( ) \$ \$ 1 \$ \$ 1 \$ \$ \$ \$ ( ) , , since ' \$ \$ ' \$ \$ ' \$3300 \$ 1 \$1500 \$ \$ \$857.14 ' 1178.6 \$2 \$2 Y S i Y S i Y S Y S c C C C C P P P P S i S S C C + + + + = = = = + + = = − = =

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