CORNELL UNIVERSITY Professor Levon Barseghyan Econ 314-1 First Mid-Term Exam
The answers should be short and straight to the point. First provide the answer, and then briefly explain how you got this
Economics 314-1 Problem Set 2 Due in Section Wednesday October 6, 2010 1. Consider a small open economy described by the following equations: Y = C + I + G + NX, Y = 6,000, G = 1,500, T = 1,000, C = 5
Macroeconomics 314-1 Professor Levon Barseghyan Midterm What to expect 1. Suppose the economy is initially at a steady state, and that some of the nations capital stock is destroyed because of a natu
econ 3140-2 problem set one due Friday, January 30 attempt all questions
1
Consider the following statements: a) Following well-known principles, the development of alternative energy technology like
Economics 314-1 Problem Set 3 Due in Section Wednesday Oct. 27
Fall 2010
Question 1: An economy begins in long-run equilibrium, and then a change in government regulations allows banks to start paying
Economics 314-1 Problem Set 4 Due on Wednesday November 10
Fall 2010
Question 1: Suppose that an economy has the Phillips curve = -1 -0.4(u 0.05). a. What is the natural rate of unemployment? b. Graph
Cornell University Fall 2010 Economics 3330: Problem Set 4 Solutions
1. True/False/Explain State whether each of the following is true or false and explain your answer. Please limit your explanations
Cornell University Fall 2010 Economics 3330: Problem Set 3 Solutions
1. Coupon Renegotiation (Question 20 of Chapter 14 of the text, modified) A 10-year bond of a firm in severe financial distress has
Economics 3140: Suggested Solutions to HW
9
TA: Yan Li
April 30, 2009
1
1. [(a)]
2. Decrease in real money demand
3. Increase in real money demand
4. Increase in real money demand
5. Increase in aggre
Economics 314-1 Problem Set 5 Suggested Solutions
Fall 2010
Question 1: (Chapter 16, Question 4) A rule requiring a cyclically adjusted balanced budget has the potential to overcome, at least partiall
Economics 314-1 Problem Set 3 Suggested Solutions
Fall 2010
Question 1:
a. Interest-bearing checking accounts make holding money more attractive. This change increases the demand for money. b. The inc
Economics 314-1 Problem Set 2 Suggested Solutions
Fall 2010
Question 1: a. National saving is the amount of output that is not purchased for current consumption by households or the government. We kno
Cornell University Fall 2010 Economics 3330: Problem Set 5 Due 10/14/10
There are three assets: a stock fund, a bond fund, and a risk-free T-bill money market fund that yields a sure return of 5.5%. T
Economics 314-1 Problem Set 4 Suggested Solutions Questions 1:
Fall 2010
1. The economy has the Phillips curve: = -1 0.4(u 0.05). a. The natural rate of unemployment is the rate at which the inflation
Economics 3140: Suggested Solutions to HW
10
TA: Yan Li
May 5, 2009
1
IS-LM Model
From the handout, we have two equations:
Y (1
1)
M
P
=
0
=
Y
i
+
1
0
+G
1i
(1)
(2)
= 0:01; 0 = 10; 1 = 0:5; 0 = 20; 1
econ 3140-2 problem set four due Friday, February 27 attempt all questions
1
Let f (k) = 3k 0.4 . The population growth rate is 5% and the depreciation rate on capital is 10% a.) Calculate kmax , the
econ 3140-2 problem set two due Friday, February 6 attempt all questions
1
Below are two wage distributions. The first is the distribution of nominal weekly wages for all US workers. The second is for
Economics 3140 Final Exam Solution
(December 16, 2008)
1. (15 points, The AK model)
The AK model differs from the standard Solow model in that the production function in the AK model is simply Y = AK
Economics 3140: Suggested Solutions to HW
8
TA: Yan Li
April 21, 2009
1
Problem 1
According to the gures 8.9-8.12 in Book1, Consumption and Investment are
procyclical, but the volatility of investment
Suggested Solutions to Prelim 2
TA: Yan Li
March 31, 2009
Question 1:
From c0 + c1 = 1, we can get c0 = 1
c1 . Now the individual maximizes
U (c1 ) = 0:5(1
c1 ) + 0:5c1
= 0:5 + 0:5(1
)c1
(1) If 1
> 0,
CORNELL UNIVERSITY Professor Levon Barseghyan Econ 314-1 First Mid-Term Exam
The answers should be short and straight to the point. First provide the answer, and then briefly explain how you got this