ECO 3302
REVIEW QUESTIONS FOR MIDTERM 1
(Not to be turned in)
1. In an economy with flexible prices, competitive factor markets, and fixed supplies of the
factors of production, graphically illustrate the impact of an advance in technology that
greatly im
ECO 3302
Practice problems for final exam
1. Equilibrium levels of income and interest rates are _ related in the goods and
services market, and equilibrium levels of income and interest rates are _ related in
the market for real money balances.
A) positi
Answer Key
1.
2. Output per worker, capital per worker, and the real wage will all grow at rate g, the
growth rate of technological progress in the steady state. Output per effective worker,
capital per effective worker, the capitaloutput ratio, and the r
ECO 3302
Homework #6
Due 12/5/2014
1. a. You are the chief economic adviser in a small open economy with a floatingexchange-rate system. Your boss, the president of the country, wishes to increase the
level of output in the short run in order to win reele
Answer Key
1.
The increase in national saving will decrease the domestic interest rate. The lower
interest rate will increase the amount of net capital outflows, which will decrease the
domestic exchange rate as the supply of the domestic currency in the
Answer Key
1. a. expansionary monetary policy
b.
2. a. Since the world interest rate does not change, domestic investment will not change in
the small open economy, but the domestic interest rate will decrease in the large open
economy, which will increas
REVIEW QUESTIONS FOR MIDTERM 2: ANSWER KEY
1. a.
b.
c.
d.
2. a.
No. 200
Yes. It decreases by 100.
Yes. It decreases by 100.
It will rise.
The IMF must propose expansionary fiscal policy, i.e., increasing government
spending and/or cutting taxes. This will
HOMEWORK ASSIGNMENT # 2: ANSWER KEY
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
C
C
A
C
B
C
C
A
B
C
B
C
C
D
C
B
A
D
B
A
A
B
a. $1 billion; b. $10 billion; c. $1 billion; d. $5.5 billion
The Federal Reserve cannot
Due: 02/04/2016
ECO 3302
HOMEWORK ASSIGNMENT # 1
PART I: MULTIPLE CHOICE QUESTIONS (2 points each)
1. Macroeconomics does not try to answer the question of:
A) why do some countries experience rapid growth.
B) what is the rate of return on education.
C) w
Due: 02/04/2016
ECO 3302
HOMEWORK ASSIGNMENT # 1
PART I: MULTIPLE CHOICE QUESTIONS (2 points each)
1. Macroeconomics does not try to answer the question of:
A) why do some countries experience rapid growth.
B) what is the rate of return on education.
C) w
HOMEWORK ASSIGNMENT # 1: ANSWER KEY
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
B
A
B
A
D
A
B
C
C
D
D
D
B
B
B
B
D
B
B
A
The supply of labor force increases, which forces the real wage lower and increases the
quantity of labo
Due: 02/18/2016
ECO 3302
HOMEWORK ASSIGNMENT # 2
PART I: MULTIPLE CHOICE QUESTIONS (2 points each)
1. People use money as a medium of exchange when they:
A) hold money to transfer purchasing power into the future.
B) use money as a measure of economic tra
Due: 02/04/2016
ECO 3302
HOMEWORK ASSIGNMENT # 1
PART I: MULTIPLE CHOICE QUESTIONS (2 points each)
1. Macroeconomics does not try to answer the question of:
A) why do some countries experience rapid growth.
B) what is the rate of return on education.
C) w
Due: 02/18/2016
ECO 3302
HOMEWORK ASSIGNMENT # 2
PART I: MULTIPLE CHOICE QUESTIONS (2 points each)
1. People use money as a medium of exchange when they:
A) hold money to transfer purchasing power into the future.
B) use money as a measure of economic tra
Answer Key
1. a.
b. The equilibrium level of income increases. This analysis is appropriate in the short
run when prices and the interest rate are constant.
2. a.
b. The equilibrium interest rate falls.
3. The liquidity preference model predicts that an i
ECO 3302
Homework #5
Due 11/21/2014
1. a. Suppose Congress passes legislation that significantly reduces taxes. Use the
Keynesian-cross model to illustrate graphically the impact of a reduction in taxes on
the equilibrium level of income. Be sure to label
ECO 3302
Homework #4
Due 10/27/2014
1. Suppose a government is able to impose controls that limit the number of children
people can have. Use the Solow growth model of Chapter 9 to graphically illustrate the
impact of the slower rate of population growth
ECON3302 - Fall 2015
SMU - SSB
Mathematical Economics Quiz 3
Instructor: Dr. Maryam Dilmaghani
Last name:
First name:
Sketch the function
=
, where
ID:
0,1 .
y=f(x)
x
Page 1 of 1
ECON3302- Fall 2015
SMU-SSB
Mathematical Economics: Notations and Symbols
Instructor: Dr. Maryam Dilmaghani
Recall that the set of Natural Numbers is noted by N; Integers by Z; Rational Numbers by Q and
Real Numbers by R.
A. Use the usual notations for se
ECON3302 Fall 2015
SMU-SSB
Mathematical Economics
Instructor: Dr. Maryam Dilmaghani
(.)
A. Compute
(i) ( ) =
.
(
+
)
We need to apply the chain rule: an outside function (ln) is applied to an inside function (
(.)
=
(
)
(ii) ( ) =
(
+
)=
(
+
)
(
)
2
+
).
Macroeconomics Test #2 Review
11/9/15 10:41 AM
Chapter 9 Growth Theory: The Economy in the Very Long Run
9.1 - Technological Progress in the Solow Model
o The Efficiency of Labor
! Thus far, the production function has been:
" Y = F(K, L).
! We now write
Macroeconomics Test #2 Review
11/09/2015
Chapter 9 Growth Theory: The Economy in the Very Long Run
9.1 - Technological Progress in the Solow Model
o The Efficiency of Labor
Thus far, the production function has been:
Y = F(K, L).
We now write the prod
Answer Key
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
A
C
B
C
D
B
C
C
C
D
C
A
D
B
A
C
B
A
A
C
In most countries, both nominal and real GDP increase in almost every year. It is quite
possible, however, for them to move in op
ECO 3302
Homework #1
Due 9/15/2014
1. The total income of everyone in the economy is exactly equal to the total:
A) expenditure on the economy's output of goods and services.
B) consumption expenditures of everyone in the economy.
C) expenditures of all b
ECO 3302
Homework #2
Due 9/22/2014
1. The Federal Reserve's tools to control the money supply include: open-market
operations, the discount rate, and interest payments on reserves.
a. How should each instrument be changed if the Fed wishes to decrease the
Name: _ Date: _
1. Assume that total output consists of 4 apples and 6 oranges and that apples cost $1 each
and oranges cost $0.50 each. In this case, the value of GDP is:
A) 10 pieces of fruit.
B) $7.
C) $8.
D) $10.
2. When a firm sells a product out of
Answer Key
1. a. The Fed would conduct open-market sales, raise the discount rate, and raise interest
paid on reserves.
b. Open-market operations and discount rate changes affect the monetary base.
Changing interest payments on reserves alters the money m
ECO 3302
Homework #3
Due 10/20/2014
1. In times of great economic uncertainty and potential job loss, many consumers may
increase their saving as a precautionary measure. What is the predicted impact of an
increase in national saving on the domestic inter