Consumption & Savings, Problems
1. Consider the following effects of an increase in taxes for a consumer.
a) The consumers taxes increase by t in the current period. How does this affect current
consumption, future consumption, and current saving?
b) The
The Labor Market, Problems
1.
Suppose that the government imposes a proportional income tax on the consumers
representative wage income. That is, the consumers wage income in w(1 t)(h l), where t
is the tax rate. What effect does the income tax have on co
The ISLM Model, Problems
1. Within the ISLM model, show how income and the interest rate are affected by each of the
following:
a) An increase in government spending
b) An autonomous decline in investment spending
c) An increase in taxes
d) An increase
The Intertemporal Model, Part II, Problem Answers
1.
Suppose that there is a permanent increase in total factor productivity. Determine the
implications of this for current macroeconomic variables.
2.
Suppose that z increases and that K increases at the s
The New Keynesian Model, Problems
1. Suppose that the goal of the fiscal authority is to set government spending so as to achieve economic
efficiency, while the goal of the monetary authority it to achieve stability of the price level over the
long run. A
The Intertemporal Model, Part I, Problems
1.
What is the effect of an increase in d, the depreciation rate, on the representative firms
investment decision, and on its optimal investment schedule?
2.
The government wishes to bring about an increase in inv
The Real Business Cycle Model, Problems
1.
A new technological innovation comes on line. What are the current effects on aggregate output,
consumption, investment, employment, the real wage, the real interest rate, the nominal interest
rate, and the price
The Simple Model, Problems
1. Suppose that the government deficit is 10, interest on the government debt is 5, taxes are 40,
government expenditures are 30, consumption expenditures are 80, net factor payments are 10,
the current account surplus is 5, an
UNIVERSITI TENAGA NASIONAL
COLLEGE OF ENGINEERING
DEPARTMENT OF MECHANICAL ENGINEERING
MEHB221  FLUIDS MECHANICS LAB
(INFORMAL REPORT)
EXP. TITLE
: Flow Visualization
GROUP MEMBERS:
1.
2.
3.
4.
5.
ID:ME097510
ID:ME097937
ID:ME097925
ID:ME098556
ID:ME0954
Chapter 13 Notes
Reading guide for chapter 13:
The most important things to get out of chapter 13:
o Evolution of Macroeconomic Thought
o Market Clearing Business Cycle Models
Real Business Cycle (RBC)
Keynesian Coordination Failure
New Monetarist
o A
Macro
HW Chap 12
Adrian Robles
4. Decrease in capital stock impact on current:
The decrease In k leads to an increase in the interest rate and a decrease in the
wages. We can also assume that output will also decrease which will cause a
decrease in money
FRED Graph Observations
Federal Reserve Economic Data
Link: http:/research.stlouisfed.org/fred2
Help: http:/research.stlouisfed.org/fred2/helpfaq
Economic Research Division
Federal Reserve Bank of St. Louis
M2
NGDPPOT
TB3MS
TB3MS
M2 Money Stock, Billions
Year
Country
1966 USA
1978 USA
1990 USA
Growth y
Growth k
Total Growth y Total Growth k
0.261 0.2843333333
0.124
0.139
0.122 0.10233333
1966 Denmark
1978 Denmark
1990 Denmark

1966 UK
1978 UK
1990 UK

1966 Ireland
1978 Ireland
1990 Ireland


0.377
0.3
Question 1
40 Points
Consider a two good model. An individual has a utility function U(x,y) = x0‘5+ yc"5 and an income
I. The prices in the market for x and y are px and py respectively. You can assume the standard
axioms of consumer choice presented in c
CostBenefit Analysis Final Exam  summer 2015
Written by Di Zhu
Section I:
1. I probably say that it depends on situation. The desired workers need to be determined,
meaning that 500 worker is not bound to have much better output and benefit than 300
wor
Dr. Seth Sacher Fall 2014
Johns Hopkins University
M.A. Program in Applied Economics
Microeconomic Theory & Policy
440.601.53
Course Outline
This course is about human decision making in the face of scarcity. Topics include:
choice and demand; production
Solutions to Problem Set #9
1. Suppose a market is characterized by a duopoly. Also suppose that each firm
makes the Cournot conjecture (i.e. each firm believes that regardless of how much
it produces, the other firms output remains constant). Firm 1s out
Solutions to Problem Set #8
1. Suppose two animals are fighting over one morsel of food. Each can either
behave like a hawk (i.e. be aggressive), or like a dove (i.e. be passive). They
play a game whose payoffs are shown in the table below.
Player 2
Playe
Solutions to Problem Set #7
1. The market demand curve for apples is QD = 300 P, and the market supply
curve is QS = (P 60)/2.
a. Find the equilibrium price and quantity in the apple market.
Given that we know that at the equilibrium QD = QS we have a sys
Solutions to Problem Set 6
11.2
Total cost are
2
C .25q 2 .25 qA qL ,
and demands are
qA 100 2PA
qL 100 4PL .
First, in order to determine maximum profits, we need to get the inverse demand
curves (price as a function of quantity). For Australia and Lapla
Solutions to Problem Set #4
1. A firms Production (or Total Product) function is given by:
TP Q = 100A2 A3
where A is the only input in the production process.
a. Find the average product (AP) function.
AP = Q/A = 100A A2
b. Find the marginal product (MP)
Solutions to Problem Set #3
1. For a price decrease, using Hicksian and Marshallian demand curves, graph
consumer surplus, the equivalent variation and the compensating variation.
Which is largest? Smallest? Explain why.
Refer to the below figure.
Hicksia
Solutions to Problem Set #2
1. Using the method of Lagrange Multipliers, find the demand functions for X and Y
for the following utility function:
U(X,Y) = X.75Y.25
PXX + PYY = I
This is known as a CobbDouglas utility function. First we set up the Lagran
Solutions to Problem Set #1
1.
a. Normative. This statement is prescriptive in nature. Words like
should or ought are good indicators of a normative statement.
b. Positive. This is a testable hypothesis; one could scientifically
investigate the relationsh
Assignment #5 Answer
Given the utility function U (c, c) and the budget constraint:
c + c / (1 + r) = y + y / (1 + r) t t / (1 + r)
find the expression and sign of the following when maximizing utility:
dc
dt
The firstorder conditions in matrix notation