ProblemSet-3-Summer2020-Solutions-v2.pdf - Econ 100B...

This preview shows page 1 - 3 out of 6 pages.

Econ 100B: Economic Analysis – Macroeconomics Problem Set #3 – Solutions Due Date: July 17, 2020 General Instructions: Please upload a PDF of your problem set to Gradescope by 11:59 pm. Late homework will not be accepted . Please put your name & student ID at the upper right corner of the front page. 1. Beginning with the second equation for Y in the middle of slide 22 of lecture 9, carry out the algebra needed to obtain the equation for the IS curve on slide 24.
1
2. If the IS curve does not shift when autonomous consumption increases by $175 MM and autonomous taxes increase by $360 MM, (a) what is the value of the expenditure multiplier?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture