National University of Singapore Department of Economics
EC2101 Microeconomic Analysis I Semester 1 AY 2012/2013
Practice Problems 5 Production
Question 1 (P&R 6.5) For each of the following examples, draw a representative isoquant. What can you say about
EC2102 Macroeconomic Analysis I
Tutorial 1, Week 3 (January 25-29, 2010)
Question 1
Consider an economy which consists of only two individuals, Mr A and Mr B .
They each live for 2 periods only; they are both young in period 1 and old in period
2, and the
Suggested Solutions to EC2102 Macroeconomic Analysis I
Tutorial 1, Week 3 (January 25-29, 2010)
Question 1
(i) Let us set up the maximization problem for Mr. j , dropping the superscript j
for now. Mr. j wants to
max u(c1 ) + u (c2 )
c1 ;c2
y2
c2
= y1 +
s
National University of Singapore
Department of Economics
EC2101 Microeconomic Analysis I
Semester 1 AY 2012/2013
Practice Problems 8 - Solutions
Short-Run Perfect Competition
Question 1 (P&R 8.8) A competitive firm has the following short-run cost functio
National University of Singapore Department of Economics
EC2101 Microeconomic Analysis I Semester 1 AY 2012/2013
Practice Problems 8 Short-Run Perfect Competition
Question 1 (P&R 8.8) A competitive firm has the following short-run cost function: STC(q) =
NATIONAL UNIVERSITY OF SINGAPORE Department of Economics EC2102 Macroeconomic Analysis I Instructor: Ho Kong Weng Tutorial 9 Question 1 Compare and contrast monetary and fiscal policies in terms of inside and outside lags. Suggested answer to Question 1:
1 of 3
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EC2102 Lecture 1; January 13, 2010
1
EC2102 Macroeconomic Analysis I
Wednesdays, 2-4pm
LT11
Dr Serene Tan
O ce Hours: Wednesdays 12-1 and 4-5pm
or by appointment
O ce: AS2/05-26
EC2102 Lecture 1; January 13, 2010
Course Grade
15%
35%
50%
Tutorial particip
EC2102 Lecture 2; January 20, 2010
1
An Individual Utility Max. Problem:
s
An Analytical Example (1/7)
Let U (c1; c2) = ln (c1) +
ln (c2).
Individual maximization problem is
s
c2
=!
max U (c1; c2) s.t. c1 +
c1 ;c2
1+r
Using the trick of expressing c2 in t
EC2102 Lecture 3; January 27, 2010
1
Competitive Equilibrium: An example (1/2)
Assume all individuals are identical (with the same preference and same income
process).
Then all agents will choose to save the same amount in each period.
P
It must be that S
EC2102 Lecture 4; February 3, 2010
Work-Leisure Decision of Consumer
(2-period economy) (1/6)
In our two-period economy, y1; y2 taken as exogenous.
How are they determined? By how much you choose to work.
Assume no government for now.
h : units of time av
EC2102 Lecture 5; February 10, 2010
1
Quick recap of representative rm problem (1/2)
s
The representative rm is owned by the representative consumer.
- as shareholder, consumer receives dividends t from the rm every period, in
real terms. This is his capi
EC2102 Lecture 6; February 24, 2010
Examples Williamson Goes Through:
1. Equilibrium eects of an increase in government expenditures today G1
2. Equilibrium eects of a persistent increase in government expenditures
3. Equilibrium eects of a decrease in cu
EC2102 Lecture 7, Week 8, March 10, 2010
1
Introducing Money into our Model (1/4)
Reading: Chapter 10, Williamson
What is money?
Money is anything that has the following properties simultaneously:
- a medium of exchange (accepted in exchange for goods bec
EC2102 Lecture 8; Week 9; March 17, 2010
1
Where are we heading to?
In the rst 6 lectures we learnt how to think in terms of a model where all
agents are optimizing and solving for the (general) equilibrium. All variables
were real variables. In lecture 7
EC2102 Lecture 11 (week 12), April 7, 2010
1
Ination, Phillips Curve, and Central Bank Commitment
Reading: Williamson, chapter 17
Should we care about ination?
ination rates in most developed countries are relatively low in the US
the last time ination ra
EC2102 Lecture 12 (week 13), April 14, 2010
1
National Income Accounting
Reading: Williamson, chapter 2
Want to obtain a measure of the total quantity of goods and services produced
for the market in a given country over a period of time.
Two measures: Gr
Topic 6
1.
Assume that the Classical Model applies to the following economy: The
economy has an aggregate production function
, where N is labor
input. The corresponding marginal product of labor equals 15-N. Labor supply is
given by
, where W is the mone
Topic 2
1.
A consumer is making saving plans for this year and next. She knows that her real
income after taxes will be $50,000 in both years. Any part of her income saved
this year will earn a real interest rate of 10% between this year and next year.
Cu
National University of Singapore Department of Economics
EC2101 Microeconomic Analysis I Semester 1 AY 2012/2013
Practice Problems 3 - Solutions Demand Theory
Question 1 A consumer's utility function is U(x, y) = x + y. Suppose he has income I = 4 and the
National University of Singapore Department of Economics
EC2101 Microeconomic Analysis I Semester 1 AY 2012/2013
Practice Problems 3 Demand Theory
Question 1 A consumer's utility function is U(x, y) = x + y. Suppose he has income I = 4 and the price of y
National University of Singapore Department of Economics
EC2101 Microeconomic Analysis I Semester 1 AY 2012/2013
Practice Problems 4 - Solutions Risk
Question 1 You have a utility function given by U (I ) = 2I +10 I . You are considering two job opportuni
National University of Singapore Department of Economics
EC2101 Microeconomic Analysis I Semester 1 AY 2012/2013
Practice Problems 4 Risk
Question 1 You have a utility function given by U (I ) = 2I +10 I . You are considering two job opportunities. The fi
Topic 5
Discuss the shape of the LM curve under each of the following condition.
(i).
Suppose that real money demand depends only on real income.
(ii).
Suppose that when the nominal interest rate equals zero, people are
willing to hold as much money as th
Topic 3
1.
In a particular economy, the asset market equilibrium condition is given by
, where M is the nominal money supply, P is the price
level, Y is real income (output), r is the real interest rate and e is the expected
inflation rate. Assume that th
Topic 4
1. Consider a hypothetical economy with full-employment output of 5000
and government purchases G of 1000. Desired consumption and desired
investment are :
= 2500 1000 r + 0.5 Y , and
= 500 - 2000 r ,
where Y is output and r is the real interest r
Topic 7
1.
A Keynesian economy is described by the following equations:
Desired consumption:
The expected inflation:
Desired investment:
Government purchases:
Taxes:
Real money demand:
Nominal money supply:
Full-employment:
(a).
(b).
(c).
Find the equatio
The Liquidity Trap
Money Demand, Money
Supply, and the Liquidity Trap
As the nominal interest rate
decreases to zero, once people have
enough money for transaction
purposes, they are indifferent
between holding money and
holding bonds. The demand for
mone
1
Name (in your student card): _
Seat No.: _
INSTRUCTIONS
i.
There are 30 multiple-choice questions. You have 1 hour 15 minutes.
ii.
Choose the most appropriate answer. Each correct answer is worth 1 point. There is no
deduction for incorrect answer. Us
Prepared Statement
Robert Solow
Professor Emeritus, MIT
House Committee on Science and Technology
Subcommittee on Investigations and Oversight
Building a Science of Economics for the Real World
July 20, 2010
It must be unusual for this Committee, or any C
Topic 1
1.
Suppose that the production function takes the Cobb-Douglass form
, where 0 < < 1. Check that this production function
exhibits constant returns to scale.
(a). Find the marginal product of labor MPN and the marginal
product of capital MPK. Are
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DECEMBER 26, 2011, 1:30 PM
A Note On The Ricardian Equivalence Argument Against Stimulus (Slightly
Wonkish)
There have been a lot of shockingly bad performances among macroeconomists in this crisis;
but if I had to pick the one that is most startli