Economics 312
Macroeconomics
Noah Williams
Problem Set 1
Due in class on February 12.
1. Suppose that instead of simply being a waste of output, government purchases are
used for infrastructure which increases current productivity. In particular, suppose
Economics 312
Macroeconomics
Noah Williams
Problem Set 3
Due on April 11, either in discussion or in my mailbox by 9:30 AM.
1. Suppose that there is a temporary change in consumer sentiment, so that households cut back on consumption spending, but this ha
Economics 312
Macroeconomics
Noah Williams
Problem Set 4
Due on May 9, either in class or in my mailbox by 4:30 PM.
1. Consider a simple IS-LM model given by the following equations:
IS : Y
M
LM :
P
= a0 a1 r + u
= b0 + b1 Y b2 r + v
where all ai and bi c
Economics 312
Macroeconomics
Noah Williams
Problem Set 2
Due on February 28, either in discussion or in my mailbox by 9:30 AM.
1. This problem considers a variation on the Solow model. Suppose that instead of
the population growing at a constant rate, tha
Econ 312 Intermediate Macroeconomics: Advanced Treatment
Spring 2014, Problem Set 1 Solution1
1. This question is more qualitative ( graph and discussion is enough).
The Social Planner's Problem is
max
u(c, l)
c,l
s.t. c + G = z (G) F (K, h l)
First Order
Economics 312
Macroeconomics
Noah Williams
Problem Set 2 Solutions1
1. This problem considers a variation on the Solow model. Suppose that instead of
the population growing at a constant rate, that people have fewer children as they
become wealthier. In p
Economics 312
Macroeconomics
Noah Williams
Problem Set 3 Solution1
1. Suppose that there is a temporary change in consumer sentiment, so that households cut back on consumption spending, but this has no other direct eects on the
economy. Consider the Keyn