Complete problems 5,6, 7,13 and 14. A copy of the homework questions is also on
Canvas-Chapter 12 Homework for students. You may upload a copy of your solution or
bring a copy to class.
Chapter 12 Homework: Wisner Text
Use the following data to answer the
Macroeconomics
Chamberlin and Yueh
Chapter 7
Lecture slides
UsewithMacroeconomics
The IS-LM Model
The IS Curve: Equilibrium in the Goods Market
The LM Curve: Equilibrium in the Money Market
General Equilibrium: The IS-LM Model
Comparative Statics
Fiscal
Chapter 2
Useful Mathematics
In order to fully enjoy the beauty of dynamic programming modeling, we must first recall
some useful mathematical concepts. Classical references for the material contained in this
chapter are SLP, and Rudin (1964). More advanc
Chapter Four
Utility
Preferences - A Reminder
p
x
y: x is preferred strictly to y.
x ~ y: x and y are equally preferred.
x f y: x is preferred at least as
~
much as is y.
Preferences - A Reminder
Completeness:
For any two bundles
x and y it is always p
Labour market,
Unemployment, Wages,
Phillips curve
Ing. Helena Horska, Ph.D.
2011
7.1 Labour Market
Labour markets function through the interaction of workers and employers. Labour
economics looks at the suppliers of labour services (workers), the demande
Chapter 12: IS-LM and Aggregate Demand
Instructors Manual
Chapter 12: IS-LM and Aggregate Demand
Problem 1
Higher expected inflation leads to higher nominal interest rates (See Figure 11.2 in Chapter 11).
Higher expected inflation shifts the IS curve to t
Aggregate Supply and the
Phillips Curve
Chapter #6
Inflation and Unemployment
To further develop AS side of the econ (dynamic adjustment from short to long run)
examine P-Y relationship based on links between wages, P, employment & Y.
Introduce role of pr
Chapter 12
Further thinking in macroeconomics: the IS/LM model and schools of economic
thought
1
Use the concept of the 4 interacting macro markets to show what happens in each
of the other three markets when there is a disturbance in:
a. The market for m
SOLUTIONS TO END OF CHAPTER EXERCISES
3.1
1.
Completeness - given two combinations of goods A and B, a
consumer either
prefers A to B, B to A, or is indifferent between the two. This
property ensures
that a consumer is able to compare and
evaluate combina
Lily Wong (CUTIE)
Econ 1011
6d. The Calculus of Optimization
As we know from the previous section, the goal of consumer is to Maximize Utility. There are two conditions
to Maximize Utility:
1.
Slope of Indifference Curve = Slope of Budget Line
In other wo
CHAPTER 7. PUTTING ALL MARKETS TOGETHER:
THE AS-AD MODEL
I.
MOTIVATING QUESTION
How Are Output, the Unemployment Rate, and the Interest Rate Determined in the
Short and Medium Run?
Output, the unemployment rate, and the interest rate are determined by sim
Chapter 2: Measuring the Economy
Instructors Manual
Chapter 2: Measuring the Economy
Problem 1
A closed economy is an economy without international trade, while an open economy is an
economy that participates in international trade.
The public sector refe
Blanchard: Phillips Curve
To model the relationship between inflation and unemployment, rewrite AS as a relationship
including inflation, expected inflation, and unemployment rate.
Write our model for price setting, and for wage setting.
Write our AS rela
Chapter
17
Inflation,
unemployment
and aggregate
supply
I
nflation and unemployment are two of the most important macroeconomic problems.
Indeed, the main goals of macroeconomic stabilization policy are to fight cyclical
unemployment and to avoid high and
Data Source
Last Updated Date
World Development Indicators
11/17/2016
Country Name
Aruba
Andorra
Afghanistan
Angola
Albania
Arab World
United Arab Emirates
Argentina
Armenia
American Samoa
Antigua and Barbuda
Australia
Austria
Azerbaijan
Burundi
Belgium
B
Criticisms of Aggregate Demand and Aggregate Supply:
Mankiws Presentation
by Fred Moseley
Mount Holyoke College
[email protected]
The Aggregate Demand Aggregate Supply framework has dominated
intermediate macroeconomics textbooks since the 1980s. How
EXCHANGE RATE THEORY AND MONETARY POLICY
by
CHRISTOPHER M. ADAM
Introduction
nYo objectives guide the method and contents of this paper. First, it is
a survey, in particular of several theoretical developments. Secondly, this
survey focuses on what modern
Price Effects on Compound Commodities
Junichi Minagawa and Thorsten Upmann
Price Effects on Compound Commodities
Junichi Minagawa
Thorsten Upmann
March 2, 2015
Abstract
We explore price effects of simultaneous price changes for a group of goods,
which we
In this chapter, we learn:
in the presence of a systematic monetary policy, we can combine
the IS curve and the MP curve to get an aggregate demand (AD)
curve.
the Phillips curve can be reinterpreted as an aggregate supply (AS)
curve.
the AD and AS curve
OPEN-ECONOMY IS-LMWITH MONETARY
POLICY CONDUCTED VIA AN INTEREST RATE
INSTRUMENT
bY
TONY ASPROMOURGOS*
It has been almost universal for academic economics to model monetary
policy in terms of a quantity instrument-the setting of a monetary
aggregate, usua
Q.5.1
Suppose the poultry industry in country X is perfectly competitive with the supply of
chicken coming from both domestic farms and farms located in the neighbouring
country Y. The industry is greatly disturbed by the threat of bird flu which is a dea
The full dynamic short-run model
1
The Dynamic Model
A nice new addition to Mankiw.
Combines
- IS
- LM (changed to reflect central bank targeting)
- Phillips curve
Closed economy
Short-run of business cycles
Keynesian rather than classical
2
Monetary poli
Other Measures of Total Production and Total Income
The Division of Income, 2010
21%
FIGURE 7-5
The Division of Income
55
%
$7,981
748
350
2,455
1,036
1,418
2,993
2%
Measuring the Unemployment Rate
and the Labor Force Participation Rate
The Household Surv
Economics 102
Answers to Class Handout #1
Summer 2011
1. Suppose that you know that the points (10, 100) and (20, 200) sit on a straight line with
the y-axis measuring the price of sewing machines and the x-axis measuring the number
of sewing machines sup
BRAD DELONG'S SOLOW GROWTH MODE
2002-2006 J. Bradford DeLong. Permission given to freely (as in speech) modify and freely (as in beer) distribute this
spreadsheet as long as (a) this notice remains intact and (b) a copy of any modified version is emailed
Economics 2221b 570
Assignment
This assignment counts for 5% of the final grade. It is due at 11:59 am of the final exam day in
April (before the exam).
It is to be uploaded through your Owl.uwo.ca webpage of this course for the section of the
Assignment.
The Demand for Goods
Total Demand
Z C I G X - Q
The Demand for Goods
Consumption (C)
C = c0 + c1YD
YD Disposable Income Income - Net Taxes
Net Taxes Taxes Paid - Transfer Payments
c 0 autonomous consumption
C1
marginal propensityto consume
0 C1 1
YD Y -T
Goods & Financial Markets: The IS-LM Model
The
The IS-LM
IS-LM Model
Model
The determination of output and
interest rates in the short-run
Slide #1
Goods & Financial Markets: The IS-LM Model
The
The goods
goods market
market and
and the
the IS
IS relation
NCEA Level 3 Economics (91399) 2013 page 1 of 6
Assessment Schedule 2013
Economics: Demonstrate understanding of the efficiency of market equilibrium (91399)
Evidence Statement
Note for markers: For each question, the answer should be read as a whole befo