Chapter 10
3. Production function Y = KN
a. If K = 49 and N = 81, Y = 4981 = 7*9 = 63
b. If K and N both double, output also doubles:
98162 = 126, or, in general, (2K)(2N) = 2KN = 2Y
c. Yes, multiplyi
Text book Questions
Chapter 3
Q2)
C = 160 + 0.6YD
I = 150
G = 150
T = 100
a. Equilibrium GDP (Y)?
b. Disposable income YD ?
c. Consumption spending (C)?
Q3) use the above equations
a. Solve for equili
1. l
Ah economy is represented by the following system of equations and identities:
s=5+o.?sr;r =YT
1= lsnmi
G = 250;T=2i
d:
M
Money demand: (F) = Y 511i
M
M0113? supply: 3 = TED
C is private oons ump
Econ 204
10 points
Vamsi V.
Assignment 3 (Due: May 1, 2017 in Class)
I. Phillips Curve
5 points
Suppose that the Philips curve is given by
t = et + 0.1 -2ut
a. What is the natural rate of unemployment
Chapter 7 problem set
Question 2. Start at medium-run equilibrium, that is natural level of output and
unemployment. Then suppose there is a tax cut. What happens in the IS-LM model and
what happens i
Econ 204
7/9/15
The United States financial crisis of 2008 began with a series of subprime loans that
became sold to and pooled together by financial institutions which allowed investors to purchase
p
204A Intermediate Macroeconomics (Discussion session)
Dec. 8th 2011
Announcement
1. Final exam: Dec 13th, 10:30 12:30, Thompson hall 106
2. I will hold extra office hour on next Monday.
You can use ei
Text book Questions
Chapter 3
Q2)
C = 160 + 0.6YD
I = 150
G = 150
T = 100
a. Equilibrium GDP (Y)?
Z=C+I+G
Plug above behavioral functions into this equation, which gives you,
Aggregate function : Z =
Oliver Wyeth
29204956
Question 1 (8 points)
Using the information in the following table (Table 1), answer questions (1.1), (1.2), (1.3) and (1.4).
Table 1 Nominal and Real GDP of the U.S.
Year 2015
Y
Chapter 11
Paradox of savings/long run growth question:
The paradox of savings is the name for a conclusion we reach in our short run incomeexpenditure equilibrium analysis of the savings rate: If the
Chapter 19 Homework Answer Key
Question #2: Real and nominal exchange rates and inflation
Using the definition of the real exchange rate (and Propositions 7 and 8 in Appendix 2 at the end of the book)
Chapter 3 problem set answer key
Question 2
C = 160 + 0.6YD
I = 150
G = 150
T = 100
Solve for the following variables:
a. Equilibrium GDP (Y)
Option 1: Use equation 3.8 and substitute in the given par
Supplemental Study Questions for the Midterm Exam (to be combined
with study questions for Quizzes 1 and 2)
2*.1. Give short, concise definitions of the following:
a. isoquant- Collection of all baske
Chapter 20 HW Answer Key
2. Consider an open economy with flexible exchange rates. Suppose output is at the
natural level, but there is a trade deficit. What is the appropriate fiscal-monetary policy
Econ 204 Chapter 6 Homework Answer Key
Problems #3 and 6
QUESTION 3: The natural rate of unemployment: Suppose that the markup of goods prices over marginal cost is
5%, and that the wage-setting equat
Econ 204
Chapter 4 Homework Answer Key
3. Consider a bond that promises to pay $100 in one year.
a. What is the interest rate on the bond if its price today is $75? $85? $95?
We use this formula (from
Question .3 [50 points
Consider that the Federal Resene Elanli: decidestci undertake a largescale asset purchase resulting in an increase in
m ciney su p-ply.
a. 1iI'iI'hatiiyoulo be the eiect ofsuch
Question .1. [50 points
a. Explain howa crisis that originated in the nancial sector rapidly.r spread to the real sector in the US in 200?
03. ftpomrst
o. Explain howthe Emit-08 crisis in the US gener
uesijon .2 [50 points
Suppose that the gayemment increases public expenditure with no change in taxes.
a. 1il'il'hatwould be the eiects oilhis policy [the decrease in governmentspending on equilibrium
Review Guide for Econ 204 Final, Fall 2016
Review Class, Wednesday Dec. 14, (in Class, Dec 14th, 8 to 8.50 AM)
1. Labor Market (Chapter 6)
wage determination W = Pe F(u,z)
price determination P = W (1
Answer all parts of the test.
You have 2 hours to do finish the test and upload your answer in the Blackboard system.
Question 1 (30 points)
a. The dynamics of capital accumulation over time can be ex
Econ Final
Monetary police
Definition: the use of policy tools, such as regulation and issuance of currency, to
affect the money supply, credit, interest rates, and exchange rates.
This contrast with
CHAPTER 8 HOMEWORK: Qs 2, 8, & 9
Question 2
a. This statement is not necessarily true: see pages 166-169 for discussion of why since the 1970s we do
not see the original Phillips curve relationship re
Econ204 Sp14
Prof. C. Heim
Response Paper 3
Nicholas White
March 6, 2014
The Bloomberg report in this weeks reading was quite the eye opener. I had known that large
multinational corporations use fore
Openness in Goods
and Financial Markets
Slide #9 based on chapter 18
UMass Econ 204
Winter 2018
1
Openness in goods market
Imports, exports, and exchange rates
2
From closed economy to open
economy
C
Long run capital
accumulation and economic
growth
(slide #7)
(based on chapter 10-4 and chapter 11-1, 11-2)
UMass Econ 204
Winter 2018
1
Economic growth is important
Growth = steady increase in per c
Price, Output, and Impact of
Monetary and Fiscal Policies in the
Medium Run AS AD analysis
(slide #6A)
(based on chapter 7)
UMass Econ 204
Winter 2018
1
IS-LM, Labor market, Phillips Curve
The IS-LM
Lecture 3 : Growth and
technological
progress
Key issues
The role of technological progress in growth
the long run tendency towards a steady state
or balanced growth i.e. where the growth rate
of ou