Homework 4, due in class Tuesday April 19th
ECO 209 Macroeconomics
Question 1
Suppose that there is a limited commitment in the credit market, but lenders are uncertain about
the value of collateral. Each consumer has a quantity of collateral H, but from
Eco209H Intermediate Macroeconomics (Honors)
Fall 2015
Homework #1
Due: 9/18 Fri. (Recitation Hours, 9:00-9:50 at Harkness 210)
I. Do the following problems from the textbook.
Chapter 2: Problem Questions 2, 3, 4, 7, 9.
II. Do the empirical analysis below
Homework 1, due in class on Tuesday Feb 9th
ECO 209 Macroeconomics
Question 1.
Suppose a representative consumer has preference over consumption (c) and leisure (l). His indifference curve is described by the following function:
u(c, l) = 3 ln(c) + 2 ln(l
Homework 3, due in class March 29th
ECO 209
Question 1
Suppose that the government makes a one-time investment in new public school buildings, which
results in a one-time reduction in consumption. The new public school buildings increase the
efficiency wi
Homework 2, due in class on Thursday Feb 18th
Question 1
Suppose that the government decide to reduce the lump-sum taxes. Diagram the eects this
had on aggregate output, consumption, employment, and the real wage and explain your results.
(Note that you s