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
2. Demand for goods
a. Consumption
b. Investment
c. Go
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, 11am12pm, in EM 001
Email: [email protected]
Offic
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
discounted value? In each case, explain why.
a. Estimat
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 research is
the extent to which firms benefit from the
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 are nominal.
c. Nominal. If the lease payments are in no
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 into changes in i, and the real interest rate is left
un
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, changes in inflation have
no effect on the real interes
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 the test will
be drawn directly from this list, nor am
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 the test will
be drawn directly from this list, nor am I
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 indicates immigration in 2009-10 (population years in Ca
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 the
number of workers grows at 2% per year and the rat
University of Toronto
Economics Department
Macroeconomics, Theory and policy
Assignment #2
Masoud Anjomshoa
6- In 2001, Statistic Canada switched to a new approach of calculating growth rate of real GDP, called Chain-Weight real
GDP, instead of traditiona
Macroeconomics Theory and Policy
Consumption
Chapter 20
Masoud Anjomshoa
1
Consumption:
Consumption is a very crucial part of demand,
because:
1- the only objective of an economy is producing the
maximum possible consumption, because people’s welfare is
o
Concept Sheet for ECO202 Final Exam
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 the exam
will be drawn directly from this list, nor
ECO202: Homework Assignment 4
This assignment is only for practice purposes. It will not be collected for credit.
Solutions will be posted at noon on Tuesday, April 3rd, 2012.
You may find the following equations helpful to you in solving some of the prob
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 look at how the slope
changes overtime and to determin
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),
implies: K/N=(s/)3/2
c. Y/N =(s/)1/2
d. Y/N = 2
e. Y/N = 21/
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 and
capital per worker.
b. For a given savings rate (s)
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 the fertility of applied research; a (small) decrease i
University of Toronto
Economics Department
Macroeconomics, Theory and policy
Assignment #3
Masoud Anjomshoa
Olivier Blanchard, David Johnson, Macroeconomics, Third Canadian Edition (2007).
Chapter 3, Questions 1, 2, 3, 4, 5, and 6. (The same for the secon
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 openness to the model
Openness in goods markets
Openness in f
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 each, and Jack buys 730 cans of Coke. In year two, cans
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 = $ 10,668,700,000 (2 points)
The most crucial figure on
ECMB06 All lectures
Macroeconomic Theory and Policy: A Mathematical Approach
Assignment 1
Due: (On or before) Friday, June 19, 2009, 12:00 noon
Room:
MW 380 (Professor Parkinsons office)
Note: Assignments submitted after 12:00 Noon on June 19th WILL NOT B
ECMB06 Macroeconomic Theory and Policy
Assignment 2 Answer Key Summer 2009
Question 1 (25 points)
Part (a) (4 points)
K
L
Y A
(1 )
Y
A
K
L
Growth rate of output in CANADA:
0.03 + 0.30(0.015) + 0.70(0.02) = 0.0485 (4.85 %) (1 pt)
Growth rate of output in A
ECMB06 LEC 01, 02, 03 & 04
Macroeconomic Theory and Policy
Assignment 2
Due: On or before April 3rd, 2009 (No Later than 12:30pm)
(Note: Assignments submitted after 12:30pm on April 3rd WILL NOT BE accepted
under ANY circumstance.)
Instructions:
You may