ECON 385: INTERMEDIATE MACROECONOMIC THEORY II
ASSIGNMENT
Due: by 10:00AM Friday, March 11
You can either scan your whole assignment (including this cover page) as a .pdf or take pictures of
your graphs (if graphs they are) and embed them in a Word docume

Name:
Intermediate Macroeconomic Theory II, Fall 2015. Section A2.
Instructor: Dmytro Hryshko
Midterm Exam (32 points+4 bonus points). October 23.
1. (16 points) Let the economys production function be Y = 6K 1/2 (EL)1/2 .
Households save 60% of their inc

Name:
Intermediate Macroeconomic Theory II, Fall 2015. Section A1.
Instructor: Dmytro Hryshko
Midterm Exam (32 points+4 bonus points). October 23.
1. (16 points) Let the economys production function be Y = 4K 1/2 (EL)1/2 .
Households save 20% of their inc

Economics 385 B1
Final Exam
Allan Wesley
Student Name
April 28, 2011
Student Id Number
Instructions:
Write your name and student id in the spaces indicated.
This is a 120 minute exam.
The Maximum number of possible marks is 120 1 mark per minute if you wa

Econ 385 Intermediate Macroeconomics I
Homework Assignment #1 - Answer Key
Malik Shukayev
February 11, 2017
Abstract
As always with my homework questions or exam questions, please
make sure to answer the question posed, and show/explain your work, so
that

Economics 385
Section 1 - One Period Model
University of Alberta, Winter 2016
January 13, 2016
(University of Alberta, Winter 2016)
Economics 385
January 13, 2016
1 / 65
A Simple One-Period Model of the Economy
The model economy has three types of agents:

Chap4
Representative consumer
-Stand-in for all consumers in the economy.
Utility functions
-to show preferences of the representative consumer over leisure and consumption
goods.
-Three properties: more is preferred to less;
U(C1 + 1, L1) > U(C1, L1)
U(C

Economics 385
Section 2 - Long Term Growth
UofA, Winter 2016
January 20, 2016
(UofA, Winter 2016)
Economics 385
January 20, 2016
1 / 42
Economic Growth in Canada
Per-capita income in Canada in 2010 was $47,606. In 1870 it was 1,636
(in 2010 dollars)
(UofA

Econ 385
Two Period Model
UofA, Winter 2015
February 1, 2016
(UofA, Winter 2015)
Econ 385
February 1, 2016
1 / 43
Intertemporal Trade-offs
Until now, we have focussed on intra-temporal trade-offs - leisure and
consumption for example.
Now we will look at

ECON385: A note on the Permanent Income Hypothesis (PIH).
Prepared by Dmytro Hryshko.
In this note, we will try to understand the permanent income hypothesis (PIH).
Let us consider the following two-period problem. Consumers within-period utility
function

A Note on geometric series.
Instructor: Dmytro Hryshko. ECON 385.
Suppose you have a series
1 + x + x2 + x3 + x4 + . . . + xt1 + xt ,
(where t is some arbitrary positive integer, e.g., t = 10, 20, , etc.) such that each
successive element of the series eq

The Permanent Income Hypothesis
(PIH)
Instructor: Dmytro Hryshko
1 / 16
Milton Friedmans Permanent Income
Hypothesis
Milton Friedman postulated the following model of
consumption:
Income :
Y = Y T + Y P,
Consumption :
C = Y P.
Y P is the permanent income

ECON385-B2 Intermediate Macroeconomic Theory II
MIDTERM
To be returned to the instructor.
Answer all questions. Part marks are listed:
Question 1
In 1996, economist Robert Shiller conducted a survey. Survey respondents were asked to judge the
seriousness

Learning objectives
' Short run money non-neutrality and long run money
neutrality
- Phillips curve
' Short run Phillips curve
0 Long run Phillips curve
0 Inflation expectations
0 Adaptive expectations
' Rational expectations
O cost-push and demand-pull

A DYNAMIC MODEL OF
AGGREGATE DEMAND AND
AGGREGATE SUPPLY The DAD-DAS model
0 A simplified version of a Dynamic Stochastic General
Equilibrium (DSGE) model. Learning objectives
1. Elements of the Dynamic Aggregate Demand-Dynamic Aggregate
Supply (DAD-DAS)

Learning objectives
0 Short run money non—neutrality and long run money
neutrality
' Phillips curve
0 Short run Phillips curve
- Long run Phillips curve
0 Inflation expectations
' Adaptive expectations
' Rational expectations
0 cost-push and demand-pull

Learning objectives
1. Elements of the Dynamic Aggregate Demand-Dynamic Aggregate
Supply (DAD-DAS) model
i. Equation of the demand for goods and services
ii. Fisher equation
iii. Phillips curve
iv. Adaptive expectations
v. The monetary policy rule
2. How

Learning objectives
1. Elements of the Dynamic Aggregate Demand-Dynamic Aggregate
Supply (DAD-DAS) model
i. Equation of the demand for goods and services
iL FBherequaﬂon
iii. Phillips curve
iv. Adaptive expectations
v. The monetary policy rule
2. How to s

Learning objectives
3. How to use the DAD-DAS model
i. Short run equilibrium
ii. Effect of shocks to aggregate supply
' oDynamic responses of macroeconomic variables to,a supply
shock
iii. Effect of shocks to aggregate demand
0 Dynamic responses of macroe

Learning objectives
Short run money non-neutrality and long run money
neutrality
Phillips curve
0 Short run Phillips curve
0 Long run Phillips curve
Inflation expectations
° Adaptive expectations
0 Rational expectations
cost-push and demand-pull inflation

Market Segmentation Theory
FNCE 4070
Financial Markets and Institutions
Market Segmentation Theory
This theory states that the market for
different-maturity bonds is completely
separate and segmented.
The interest rate for a bond with a given
maturity i