Our textbook
Macroeconomic
Theory 180.302:
Chapter 7
Putting All Markets
Together:
The ASAD Model
Tue, 2/24/15
7-1 Aggregate Supply (AS)
Recall wage-setting:
price-setting:
Note: in short-run, is possible
Combine the two equations to obtain:
or, observing
Our textbook
Chapter 9
Macroeconomic
Theory 180.302:
The Crisis
Tue, 3/10/15
9-1 From a Housing Problem to a
Financial Crisis
Figure 9-1 U.S. Housing Prices since 2000
9-2
9-1 From a Housing Problem to a
Financial Crisis
Figure 9-2 Bank Assets, Capital, a
Macroeconomic Theory
180.302
Section Meeting 5 (March 2 3, 2015)
Agenda for Today
1. Mortgage Markets
2. From Mortgage Defaults to Bank Failures
3. Implications for the Real Economy
Mortgage Markets
Mortgage Markets Basics I
Why is there a mortgage market
Our textbook
Macroeconomic
Theory 180.302:
Chapter 8
The Phillips
Curve
Thu, 2/26/15
Figure 8-1 Inflation versus Unemployment in
the United States, 19001960
8-2
Figure 8-1 Inflation versus Unemployment in
the United States, 19001960
8-3
8-1 Inflation, Exp
Our textbook
Macroeconomic
Theory 180.302:
Chapter 3
The Goods
Market
Thu, 2/5/15
3-1 The Composition of GDP
Table 3-1 The Composition of U.S. GDP, 2014
BillionsofDollars
1
2
3
4
5
GDP(Y)
Consumption(C)
Investment(I)
Nonresidential
Residential
Governments
Name
The Johns Hopkins University
Spring 2014
180.302: Macroeconomic Theory
First Midterm
Suggested Solutions
Instructions: There are two parts to this exam. The rst part has 4 shorter questions,
worth 12 points each. The second part has 2 longer question
The Johns Hopkins University
Spring 2014
180.302: Macroeconomic Theory
Problem Set 1
Assigned: Tuesday, February 4
Due: Tuesday, February 11
1. Suppose the economy of Triskelion consists of three goods: bread, circuses, and
housing. 1 The following table
Name
The Johns Hopkins University
Spring 2014
180.302: Macroeconomic Theory
Second Midterm
Instructions: There are two parts to this exam. The rst part has 4 shorter questions,
worth 10 points each. The second part has 3 longer questions, worth 24, 20, an
The Johns Hopkins University
Spring 2014
180.302: Macroeconomic Theory
Problem Set 2
Assigned: Tuesday, February 11
Due: Thursday, February 20
1. Suppose a countrys government increases both transfer payments and
government spending. Using the classical m
Our textbook
Macroeconomic
Theory 180.302:
Chapter 11
Saving, Capital
Accumulation,
and Output
Tue, 3/24/15
11-1 Interactions between Output
and Capital
Figure 11-1 Capital, Output, and Saving/Investment
11-2
Simplifying Assumptions (for today)
2 Assumpti
Problem Set 1: Answers
Macroeconomic Theory 180.302
NOTE: Graded out of 75 points (without including the 1 bonus point)
1
Systems Theory (7pts)
a Micro Components of systems:
i Geophysical Sciences: Physics, Chemistry.
ii Medicine: Biology, Chemistry.
iii
1
PROBLEM SET 2: ANSWERS
1. LM Curve (total 15 pts)
a) Assume that nominal money demand is determined by the equation =4 $Y /i . Here, is
the nominal money demand, $Y is the nominal GDP, and i is the nominal interest rate. Using this
equation, what happen
Review Materials: Week 4
Macroeconomic Theory 180.302
AD/AS Model
1. In our lectures, we introduced the IS/LM framework to explain how equilibrium output
and interest rate are determined. We used the AS/AD framework to explain how equilibrium output and p
Problem Set 3 Solutions
Macroeconomic Theory 180.302 Professor Korinek
Due Date: Tue, Mar. 10th, 2015 at 1:30pm
1. Phillips Curve
Assume that the price setting condition for firms in the economy is P=(1+ m)w , and the wage
setting condition in the economy
Our textbook
Macroeconomic
Theory 180.302:
Chapter 5
Goods and
Financial Markets:
The IS-LM Model
Thu, 2/12/15
5-1 The Goods Market and the IS
Relation
Lets add a more realistic model of investment
into our model of goods market equilibrium:
Output = dema
Our textbook
Macroeconomic
Theory 180.302:
Chapter 1
A Tour of the
World
Thu, 1/29/15
1-1 The Crisis
Figure 1-1 Stock prices in the United States, the
Euro area, and emerging economies, 20072010
1-2
1-1 The Crisis
Table 1-1 World Output Growth since 2000
Problem Set 4: Answers
1. Economic Growth: Annual growth rate for the variable X in year t can be computed
using the equation (1).
gX =
Xt Xt1
100
Xt1
(1)
where gX is the annual growth rate in percentage points.
(a) 3%.
(b) 1.95%.
(c) 1.46%.
(d) 1.63%.
(
Our textbook
Macroeconomic
Theory 180.302:
Chapter 12
Technological
Progress
and Growth
Thu, 3/26/15
Varieties of Technological Progress
produce more using same amount of K and N
create better products and services
new products and services
larger variety
The Johns Hopkins University
Spring 2014
180.302: Macroeconomic Theory
Problem Set 3
Assigned: Thursday, February 20
Due: Tuesday, February 25
1. For reasons that are not well understood, in 1973 the rate of technological
progress is estimated to have slo
The Johns Hopkins University
Spring 2014
180.302: Macroeconomic Theory
Course Information and Syllabus
Professor John Driscoll
Office: Mergenthaler 270 (Tuesday and Thursday only)
Office Hours: Tuesday, Thursday 10:00-11:00 a.m. and by appointment
Phone:
MacroTheoryProblemSet1
1.
a. NominalGDPStargate3211=545000
RealGDPStargate3211=545000
NominalGDPStargate3212=700050
RealGDPStargate3212=640500
b. NominalGDPgrowthrate=(700050545000)/545000=0.2845=28.45%
RealGDPgrowthrate=(640500545000)/545000=0.1752=17.52
MacroTheoryLecture19
ProblemSet6dueTuesday
AssetPricebubbles
o Alotofuncertaintyaboutfuturepathofdividends
o canhaveselffulfillingprophecies(pricegoesupbecauseyouexpectthe
pricetogoup)
otherfinancialmarketproblems:mayarisefromimperfectinformation
o mora
MacroTheoryLecture7
Acemoglu,Robinson,JohnsonWhyNationsFail
o WhydidIndustrialRevolutionstartwhenitdidandwhydidgrowth
continueforsomecountriesbutnottoothers?
Developmentofdifferentinstititutionsindifferentcountries?
o Emphasizedrulesofinstitutionsandgove
MacroeconomicTheoryLecture11/28/2013
Whystudymacroeconomics
o Tounderstandcurrentevents
o Tounderstandcrosscountrydifferencesinlivingstandards,longrun
economicgrowth
o Tounderstandeconomicpolicies
Fiscalpolicytaxes,spending
Monetarypolicycentralbanktoin