Thompson Tran
1/30/2014
ECN 313
Assignment 2
1.a) The consumers optimal choice of consumption and leisure are c = l = 3.89
c + wl = hw + pi T
c +.75l = .75(16) + .8 6
diagram
c +.75l = 6.8
l +.75l = 6.8
l = 3.89, c = 3.89
b) The consumers optimal choice o
1
Problem Set 1
This problem set is due on September 17, before lecture. No late homework will be accepted.
I. Math Refresher (extra credit, 5pts)
1) Prove that percentage change in (Y /P ) = percentage change in Y - percentage change
in P
Take the total
Homework #2 Answers
ECON 310
20 points possible
All answers should be a complete as you can make them. This means
that if you think a simple expression or graph will aid in your answer, then
you should probably add this to your answer. If you are asked to
Intermediate Macroeconomic Theory
ECN 313
Lecture 2: Measurement
Roozbeh Hosseini
This version: January 11, 2014
1 / 79
Taxonomy of Economic Variables
Most of the variables we will study are either:
1. A price: Price Aggregate (CPI, GDP deator)
2. A stock
Intermediate Macroeconomic Theory
(ECN 313, Summer 2016)
Lecture 2: Measurement
Alex Rivadeneira
Arizona State University
July 1, 2016
1/28
Measurement
I
Question: Why do almost all the world use the
metric system?
2/28
Measurement
I
I
Question: Why do al
Intermediate Macroeconomic Theory
(ECN 313, Summer 2016)
Lecture 1: Introduction
Alex Rivadeneira
Arizona State University
June 29, 2016
1/17
What is macroeconomics about?
I
What does it study?
2/17
What is macroeconomics about?
I
What does it study?
I
Th
Intermediate Macroeconomic Theory
(ECN 313, Summer 2016)
Lecture 4: Consumer choice: preferences, time and
budget constraints
Alex Rivadeneira
Arizona State University
July 6, 2016
1/28
The Consumer/Household
I
The household/representative consumer has
pr
Intermediate Macroeconomic Theory
(ECN 313, Summer 2016)
Lecture 6: Income and substitution effect
Alex Rivadeneira
Arizona State University
July 11, 2016
1/20
Time Allocation Problem
I
The consumers maximization problem is
max U (C, l)
(1)
C
| =
cfw_zh
(
Intermediate Macroeconomic Theory
(ECN 313, Summer 2016)
Lecture 5: Consumer choice: time allocation problem
Alex Rivadeneira
Arizona State University
July 7, 2016
1/17
Optimization
I
The optimal C, l is the point where the budget line
just touches the hi
Intermediate Macroeconomic Theory
(ECN 313, Summer 2016)
Lecture 3: Real GDP across time and space
Alex Rivadeneira
Arizona State University
July 1, 2016
1/16
Real vs. Nominal Quantities
I
I
Problem: how much richer is US today than in 1947?
Solution: we
Intermediate Macroeconomic Theory
(ECN 313, Summer 2016)
Lecture 10: The replication argument, and Lucas (1978)
span of control
Alex Rivadeneira
Arizona State University
July 19, 2016
1/11
Profit Maximization under CRS
I
The representative firm rents capi
Intermediate Macroeconomic Theory
(ECN 313, Summer 2016)
Lecture 7: Labor supply curve
Alex Rivadeneira
Arizona State University
July 12, 2016
1/20
Time Allocation Problem
I
The consumers maximization problem is,
max ln C
cfw_C,h
1+
h
1+
(1)
subject to
Intermediate Macroeconomic Theory
(ECN 313, Summer 2016)
Lecture 8: Indivisible labor, heterogeneity, and
aggregate labor supply
Alex Rivadeneira
Arizona State University
July 13, 2016
1/10
Time Allocation Problem
I
The representative consumers maximizati
Intermediate Macroeconomic Theory
(ECN 313, Summer 2016)
Lecture 9: Production Theory
Alex Rivadeneira
Arizona State University
July 18, 2016
1/10
Representative firm
I
I
We assume there exists a representative firm that
rents capital and hires labor to p
ECN 313 Summer 2016
Problem Set 1
Due on Friday July 8, in class
Instructions
1. Late homework assignments will not be accepted under any circumstances.
2. Submitted assignments must be stapled. Non-stapled assignments will receive a maximum grade of 75%.
ECN 313 Summer 2016
Problem Set 2
Due on Thursday July 14, in class
Instructions
1. Late homework assignments will not be accepted under any circumstances.
2. Submitted assignments must be stapled. Non-stapled assignments will receive a maximum grade of 7
ECN 313 Summer 2016
Problem Set 4
Due on Thursday July 28, in class
1. (15 points) The production function is Y = 10H. Households utility function is
ln(c + 0.4G) + ln(l)
= 1. Suppose that government spending G = 0.1 and
with labor endowment, h
governmen
ECN 313 Summer 2016
Problem Set 3
Due on Friday July 22, in class
1. (30 points) Suppose a representative agent has the following utility function,
U (c, h) = c 5h
If for some reason c < 0, then his utility is U (c, h) = 5h = . Suppose also
that the repre