Joseph B. Steinberg
Department of Economics
University of Toronto
ECO202Y1Y LEC0101
Macroeconomic Theory and Policy
20132014
Syllabus
Lectures: Tuesdays, 10am12pm, in EM 001
Tutorials: Fridays, 11am12
Joseph B. Steinberg
Department of Economics
University of Toronto
ECO202Y1Y LEC0101
Macroeconomic Theory and Policy
20132014
Lecture notes for week 2
Outline
0. The short run
1. The composition of GDP
ECO202: Tutorial Worksheet 20
1. Recall that the fertility of research refers to how spending on R&D translates into new
ideas and new products (low vs. high application). Also, the appropriability of
ECO202: Tutorial Worksheet 22
1. For each of the following problems, would you use real payments and real interest rates
or nominal payments and nominal interest rates to compute the expected present
ECO202: Solutions to Homework 4
1. True/False/Uncertain
a. True. The slope of a log scale indicates the growth rate of a variable. The steeper
the slope, the larger the growth rate. This allows you to
Joseph B. Steinberg
Department of Economics
University of Toronto
ECO202Y1Y LEC0101
Macroeconomic Theory and Policy
20132014
Lecture notes for week 5
Outline
0.
1.
2.
3.
4.
Announcements
Adding openne
Joseph B. Steinberg
Department of Economics
University of Toronto
ECO202Y1Y LEC0101
Macroeconomic Theory and Policy
20132014
Lecture notes for week 4
Outline
0.
1.
2.
3.
Putting goods and financial ma
Joseph B. Steinberg
Department of Economics
University of Toronto
ECO202Y1Y LEC0101
Macroeconomic Theory and Policy
20132014
Lecture notes for week 3
Outline
0.
1.
2.
3.
Financial markets in the short
Joseph B. Steinberg
Department of Economics
University of Toronto
ECO202Y1Y LEC0101
Macroeconomic Theory and Policy
20132014
Lecture notes for week 6
Outline
0. Announcements
1. Review of some open-ec
Joseph B. Steinberg
Department of Economics
University of Toronto
ECO202Y1Y LEC0101
Macroeconomic Theory and Policy
20132014
Lecture notes for week 1
1. Measuring aggregate economic output and income
Joseph B. Steinberg
Department of Economics
University of Toronto
ECO202Y1Y LEC0101
Macroeconomic Theory and Policy
20132014
Lecture notes for week 8
Outline
0.
1.
2.
3.
4.
5.
Announcements
Recapping
Concept Sheet for ECO202 Test 3
Comment and Disclaimer: The list below is meant to give you an idea of what I think are
important concepts and relationships. This DOES NOT MEAN that all questions on t
ECO202: Solutions to Worksheet 19
1. Growth with a more general production function, Part I
a. Y/N = (K/N)1/3
b. In steady state, sf(K/N) = K/N, which, given the production function in part (d),
impli
ECO202: Tutorial Worksheet 19
1. Suppose that the economys production function is given by Y = KN1-. Assume that =
1/3.
a. Transform the production function into a relation between output per worker a
ECO202: Solutions to Worksheet 20
1. R & D Spending
a. Such a treaty would likely increase R&D spending since appropriability would
increase.
b. Increase in R&D and in output growth.
c. A decrease in
ECO202: Tutorial Worksheet 21
1. Suppose that the economys production function is: Y K NA and the saving rate (s)
is equal to 16% and the rate of depreciation () is equal to 10%. Further, suppose that
ECO202: Solutions to Worksheet 21
1.
Immigration Policy in Canada
a.
Natural population growth in Canada expected to become negative in the year
2020-21 when births are less than deaths
b.
The table i
ECO202: Solutions to Worksheet 22
1. Real and Nominal Interest Rates: Part I
a. Real. Nominal profits are likely to move with inflation; real profits are easier to
forecast.
b. Nominal. The payments a
ECO202: Tutorial Worksheet 23
1. The Fisher Hypothesis
a. What is the Fisher Hypothesis?
b. If the Fisher Hypothesis is true, then changes in the growth rate of the money
stock translate one for one i
ECO202: Solutions to Worksheet 23
1. Fisher Hypothesis
a. In the medium run, changes in inflation are reflected one for one in changes in the
nominal interest rate. In other words, in the medium run,
ECO202: Concept Sheet for Test 2
Comment and Disclaimer: The list below is meant to give you an idea of what I think are
important concepts and relationships. This DOES NOT MEAN that all questions on
Joseph B. Steinberg
Department of Economics
University of Toronto
ECO202Y1Y LEC0101
Macroeconomic Theory and Policy
20132014
Lecture notes for week 9
Outline
0.
1.
2.
3.
4.
5.
The medium run
Basic la
Question 4 of EU
a Banting Learning
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Below is the F'PF fer limb-attend. Rubbedand only makes bore products, rubber band bale and Mahler
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Afarrnar produces bath beansancl DDI'I'I on l'rarfarrn. Ifsha must give 14:15 bushels nfmrntu be able to gut
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ECMB06 Assignment 1 - SOLUTIONS
Question 1 (25 points; 4, 11, 3, 3, & 4 respectively) Chapter 2 & 3
A)
B)
Year 1 is the base year so nominal = real (for this year)
Nominal GDP (Y = C + I + G + NX)
Y =
ECMB06 Macroeconomic Theory and Policy
Assignment 1: SOLUTIONS
Question 1 (25 points) Chapter 2
Jack consumes only cans of soft drinks. In year 1, cans of Coke cost $1 each, cans of Pepsi cost
$1.25 e
ECMB06 Assignment 1 - SOLUTIONS
Question 1 (20 points; 4, 4, 4, 4, & 4 respectively) Chapter 2 & 3
A)
B)
Year 1 is the base year so nominal = real (for this year)
Nominal GDP (Y = C + I + G + NX)
Y =