ECON 202 MACROECONOMIC
ECON
THEORY
THEORY
CHAPTER 19-THE GOODS MARKET N AN OPEN
ECONOMY
OUTLINE
2
Components of demand for domestically produced goods
Equilibrium output and the trade balance
Increases in demand: domestic and foreign
Multipliers in an ope
ECON 202 MACROECONOMIC THEORY
Problem Set 1-Answer Key
PART I - TRUE/FALSE/UNCERTAIN
1.
GDP is the value of all goods and services produced in the economy.
FALSE.
GDP = Gross Domestic Product
GDP=Value of FINAL goods & services produced in the economy.
2.
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Middle East Technical University
Department of Economics
ECON 201
Spring 2013/2014
PROBLEM SET 3
1) (MIT) One way to rule out the potential that the non negativity constraints arent
binding is to look at the marginal rate of substitution (MRS) when one of
Middle East Technical University
Department of Economics
ECON 201
Spring 2013
PROBLEM SET 2
Homework: 5,6,8,10,13
The others are suggested problems not to be turned in
1) (MIT) Burcu and Deniz are painting their office. At the paint store, Burcu says she
ECON 331 MATHEMATICAL ECONOMICS I
Homework # 1
(Due Midterm Exam- Nov. 7, 2016)
1.
October 28, 2016
Consider the following simple Keynesian macroeconomic model
Y=C+I+G
C = 200 + 0.8Y
I = 1000 - 2000R
Where the endogenous variables include national income
METU Department of Economics
Econ202 Macroeconomic Theory
Spring Semester 2012-2013
Instructors: irin Saraolu Ebru Voyvoda
TAs: Fatma Tademir Deniz Plevneli
PROBLEM SET VII
(Blanchard, Johnson Chapter 6)
Q.1 Suppose that firms mark-up over costs is 20%, a
METU Department of Economics
ECON202 Macroeconomic Theory
Fall 2015
Ans. of PROBLEM SET III
(Blanchard, Johnson Chapter 4)
Q.1 (All units are trillions of US$)
Money Demand: = $(. )
Nominal Income: $ =
Money Supply: =
a. Find MD for i=10% and i=5%.
b. W
METU Department of Economics
ECON202 Macroeconomic Theory
Fall 2015
PROBLEM SET IV
(Blanchard, Johnson Chapter 5)
1) A reduction in taxes will cause an increase in disposable income and an increase in
consumption.
METU Department of Economics
ECON202 Macroeconomic Theory
Fall Semester 2015
ANS of PROBLEM SET II
(Blanchard, Johnson Chapter 3)
PART A: TRUE/FALSE/UNCERTAIN
1. Because of a natural disaster, the government purchases $100
CHAPTER 8
The Natural Rate of
Unemployment and the
Philips Curve
1 of
34
8-1
2 of 34
Inflation, Expected
Inflation, and Unemployment
P P e (1 ) F ( u , z )
The above equation is the aggregate supply. This
relation can be rewritten to establish a relation
CHAPTER 3
THE GOODS MARKET
1 of
28
2 of 28
Time Horizons
The following discussion uses the short-run time
horizon:
When focusing on year-to-year movements in
economic activity, economists concentrate on the
interactions between aggregate production,
incom
CHAPTER 6
The Labor Market
1 of
35
6-3
2 of 35
Wage Determination
Common forces at work in the determination of
wages include:
A tendency for the wage to exceed the
reservation wage, or the wage that make
them indifferent between working or
becoming unem
Lecture 2
MACROECONOMI
C VARIABLES
Required reading:
Blanchard
chapter 2
Macroeconomic Variables
The major macroeconomic variables are:
1)
Output
2)
Inflation
3)
Unemployment
1) Measurement of Output
Great
depression there were no
measure of aggregate ec
Econ 20?. Fall 2015 Midterm 1
Now assume that c
consumption by 100.
b. Find the new equilibrium output level using the concept of ultiplier (2 points).
Explain why the change in output is larger thanlOO .e. ekplain why is the multiplier
larger than 1,
METU Department of Economics
ECON202 Macroeconomic Theory
Fall 2015
SOL. Of PROBLEM SET VII
(Blanchard, Johnson Chapters 6)
Q.1 Suppose that firms mark-up over costs is 20%, and the bargaining function is given by
F(u,z) = z 180u, where z =90, and u is th
METU Department of Economics
ECON202 Macroeconomic Theory
Fall Semester 2015
SOL. of PROBLEM SET VIII
Q.1 Assume that the following is true about the economy:
C = 70+0.1(Y-T)
I = 40 200i +0.1Y
G =100
T =100
Md=$Y(0,4-i )
Ms= 80
Middle East Technical University
Department of Economics
ECON 202
Dr. Pnar Derin-Gre
ASSIGNMENT #2 ANSWER KEY
PART I - MULTIPLE CHOICE. (1 points each)
1) E
2) D
3) D
4) C
5) D
6) C
7) C
8) A
9) A
10) A/C
11) C
12) A
13) B
14) C
15) E
16) C
17) D
18) B
1
METU Department of Economics
ECON202 Macroeconomic Theory
Fall 2015
SOL. Of PROBLEM SET VI
Q.1 Label each of the following statements trues, false or uncertain. Explain briefly.
a. A fiscal expansion tends to increase net exports. FALSE
b. Fiscal policy h
METU Department of Economics
ECON202 Macroeconomic Theory
Fall 2015
SOL. Of PROBLEM SET V
(Blanchard, Johnson Chapters 18 & 19)
Throughout, the nominal exchange rate E is defined as the price of foreign
currency in terms of domesti
LECTURE 5
THE GOODS AND
FINANCIAL MARKETS:
IS-LM MODEL
1 of
35
2 of 35
5-1
The Goods Market
and the IS Relation
Equilibrium
in the goods market exists when
production, Y, is equal to the demand for goods,
Z. This condition is called the IS relation.
In th
ECON 202 MACROECONOMIC
ECON
THEORY
THEORY
CHAPTERS 18-20:
OPENNESS IN FNANCIAL MARKETS, AND OUTPUT, THE
NTEREST RATE AND THE DETERMNATON OF THE
EXCHANGE RATE
OUTLINE
2
Balance of Payments Accounts
The Mundell-Fleming Model
Equilibrium in the goods market
ECON 202- SECTION 01
INTERMEDIATE MACROECONOMICS
FALL 2011
SYLLABUS AND OUTLINE
(Subject to change)
INSTRUCTOR:
Dr. Pnar Derin-Gre
Contact Information:
Best way to contact me is e-mail: [email protected]
I usually check my emails every day.
Office: IIBF
Middle East Technical University
Department of Economics
ECON 212
Dr. Pnar Derin-Gre
Name_
Spring, 2011
PROBLEM SET 1
Due Date: Tuesday, March 6 , 2012 in class. No late problem sets will be accepted. This Problem set
includes chapters 2 and 3 in Blanchar
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