Econ 154b Yale University Spring 2005 Prof. Tony Smith HOMEWORK #7 This homework assignment is due at the beginning of lecture on Monday, April 4. 1. Do numerical problem #3 on p. 425 in Chapter 11 of the textbook. When working this problem, remember
Economics 154a, Spring 2005 Intermediate Macroeconomics Problem Set 6: Answer Key March 28, 2005 1. Numerical Problem # 4 on Chapter 10: An economy has the following AS-AD curves: AS Curve AD Curve y = 300 + 30(M/P ) Y = Y + 10(P - P e ).
(a) What
Problem Set 7
Problem 1. Endogenous Money Supply 1. Revisit model with exogenous money supply - Analyze the effect of an increase in A. Remember that the procedure to evaluate the impacts in the economy consists of the following steps: first, determi
Problem Set 5 - Solutions Problem 1 Solow Model with per worker production function : y = Af (k).given by: y = Ak , if k<1 y = Ak if k>=1 s=0.1 ; A=1 ; n=0.05 ; d=0.1 ; = 0.3 ; = 2. 1. Graph
Solow Model - Problem 1
0.35 0.3 0.25 0.2 0.15 0.1 0.05 0
Economics 154a Fall 2005 Bjrn Brgemann o u Problem Set 2 Solution
Analytical Problem 1 1. The derivative of the production function with respect to N is given by Y = (1 - )AK N - . N To obtain this result, remember that for a function f (x) = xa th
Economics 154a Fall 2005 Bjrn Brgemann o u Problem Set 4 (posted Sep. 26, due Oct. 3 in class, discussed in section Oct. 5-6)
Problem 1: Budget Deficits and Interest Rates The data and the plots discussed in the solution are contained in an Excel Fi
1) Historical Background
2) Effect that Iraqui invasion on Kuwatit initially had on world markets-SHORT TERM Overall Effect on Stock Market(by Region) Oil Importing Oil Producing Price of Dollar Price of Gold Intrest Rates
DOLLAR ROSE INCREASE IN P
Economics 154a Fall 2005 Bjrn Brgemann o u Problem Set 6 Solution
Problem 1: (Cyclical Properties of Unemployment and Output per Worker) 1. The plots are in the file http:/www.econ.yale.edu/bb338/econ154a05/ps 6 data sol.xls. The plot for this part
Problem Set 9 - Solutions
Problem 1 1. Exogenous Labor Supply: A - pure supply shock Af, M, Mf, G , Gf - pure demand shocks Endogenous Labor Supply (N now depends on Af, G , Gf) A- pure supply shock Af, G, Gf - both demand and supply shocks M, Mf -
Economics 154a Fall 2005 Bjrn Brgemann o u Problem Set 8 Solution
Problem 1 (Myopic Consumer and the Multiplier Effect of Government Expenditures) 1. Private saving is given by Spvt = (Y - T ) - C = (Y - T ) - m(Y - T ) = (1 - m)(Y - T ). 2. Governm
I.
Analytical Problem 1 1. Y' = MPN = d/dN(AKN1-) = (1-)AKN- = 0.7. Since the MPN is always positive, the production function for this firm indicates that the firm does not experience diminishing product of labor. However, because Y' = MPN' = d2/dN2
I.
Problem 1: Two-Period Model of Savings and Investment 1. Analysis of a decrease in current income, X (X0 and Xf are set to 100; X1 is set to 50; r is set to 0.05 and the consumer's utility function is maximized when C = Cf):
Two-Period Model of S
Questions: 1. The Malthusian Model of population growth states that a population grows at a rate proportional to the present population (dp/dt = k*p). This theory is predicated on the assumption that a population grows as a result of the reproduction
I.
Problem 1 1. Data for Unemployment Rate and Output per Worker:
Unemployment and Output per Worker
0.06
0.04
0.02
0 1950
1960
1970
1980
1990
2000
2010
Output per Worker Unemployment Rate
Rate
-0.02
-0.04
-0.06 Time
The data indicate
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Problem 1 1. The first step in the analysis of the Two-Period Model with Money is to determine the effects on the savings and investment equilibrium. When A increase, Sd shifts to the right, this causes an increase in both present and future prod
I.
Problem 1 1. Part 1 a) b) c) 2. Part 2 a) b) c) d) 3. Part 3 a)
Spvt = (X T) C Spvt = (Y T) m(Y T) Spvt = (1 m)(Y T) Sgov = T G Sd = Spvt + Sgov Sd = (1 m)(Y T) + (T G) Sd = (1 m)Y + mT G
Part 3a 1. A myopic consumer is by definiti
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Problem #1 1. Aggregate Demand Curve: AD (P | Af, G, Gf, M, Mf). Full Employment (Exogenous-Labor) Curve: FEexogenous (r | A, K). With an exogenous labor supply, the only supply shock variable is current productivity, A. Future Productivity (Af),
Economics 154a Fall 2005 Bjrn Brgemann o u Problem Set 10 Solution
Problem 1 (Inflation Expectations and the Cost of Reducing Inflation) 1. The initial situation is illustrated in Figure 1. Firms expect the money supply to be M1 , which would give r
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Problem 1: 1. Part 1 a) Graph of actual investment per worker sAf(k) and (n+d)k:
Investment Per Worker
0.35
0.3
0.25
Investment
0.2 sAf(k) (n+d)k 0.15
0.1
0.05
0 0 0.5 1 k 1.5 2 2.5
b) Let k0 be the present level of capital per worker. If
SECTION ASSIGNMENTS FOR ECON 154B, SPRING 2005, PROF. TONY SMITH
Section # A B C D E F
Students 18 17 18 18 18 18
TA Santiago Santiago Ivan Yi Ivan Yi
Wed Wed Wed Wed Thu Fri
4:00-4:50 7:00-7:50 7:00-7:50 8:00-8:50 4:00-4:50 1:30-2:20
YK 220 WL
Economics 154a, Spring 2005 Intermediate Macroeconomics Problem Set 8: Answer Key April 11, 2005 1. Do numerical problem #4 on p. 425 in Chapter 11 of the textbook: An economy is described by the following equations: Desired Consumption C d = 300 + 0
Econ 154b Yale University Spring 2005 Prof. Tony Smith
MIDTERM EXAMINATION This is a closed-book and closed-notes exam. You have 75 minutes to to complete the exam. There are five (5) questions on the exam. Each question is worth 20 points, for a to
Econ 154b Yale University Spring 2005 Prof. Tony Smith HOMEWORK #2 This homework assignment is due at the beginning of lecture on Monday, January 31. 1. Do problem 1 on p. 108 in Chapter 3 of the textbook. Use U.S. annual data for the time period 196
Econ 154b Yale University Spring 2005 Prof. Tony Smith HOMEWORK #5 This homework assignment is due at the beginning of lecture on Wednesday, March 23. 1. Do problem #1 in the section "Working with Macroeconomic Data" on p. 306 in Chapter 8 of the tex
Econ 154b Spring 2005
Suggested Solutions to Problem Set 5
Question 1 For the period analyzed, of all quarterly changes in the civilian unemployment rate by at least 0.2 percentage points, about 80 were followed by changes of similar magnitude in th
Econ 154b Spring 2005
Suggested Solutions to Problem Set 7
Question 1 The IS curve is Y C d I d G 600 0.8Y " 1000 " 500r 400 " 500r 1000, so 0.2Y 1200 " 1000r. This is plotted below:
Since = e 0, the nominal interest rate (i) equals the r
Econ154b Spring 2005 Suggested Solutions to Problem Set 3
Question 1 (a) S d Y - C d - G Y - 3600 - 2000r 0. 1 Y - 1200 0. 9 Y - 4800 2000r 600 2000r (b) To graph the desired saving and desired investment curves, remember to solve the 1 desi
Economics 154a, Spring 2005 Intermediate Macroeconomics Problem Set 4: Answer Key 1. Consider an economy that consists of a single consumer who lives for two time periods. The consumers income in the current period is Y and the consumers income in th