Macro 2201: Midterm #1.
Grading scale: 100
This is a closed-notes, closed-book exam: cheating in any form will not be
tolerated. You can use a calculator. The required precision for the numerical
problems is
4 digits after the decimal point.
There are fou
Answer Key
Practice Questions for Midterm-2
(It is expected that you will read the whole syllabus. This practice questions are indicative)
Q1. Briey dene the following:
Nominal versus real exchange rate, The Marshall-Learner condition, The Jcurve, Mundell
Macro 2201: Answer Key 1
Lectures 1&2&3
Grading scale: 100
Question 1 (25pts) Which variables are endogenous and which ones are
exogenous in the model of Lecture 1?
ANS: Endogenous variables: P and Q; exogenous variables: C and Y .
Question 2 (25pts) Prov
Macro 2201: Answer Key 2
Lectures 4&5
Grading scale: 100
(25pts) Suppose you buy $1000 of government bonds. Explain
why this nancial operation is not an investment in economic terms,
despite the fact that every-day jargon would refer to it as such!
ANS: T
Macro 2201: Midterm II
Grading scale: 100
This is a closed-notes, closed-book exam: cheating in any form will not be
tolerated. You can use a calculator. The required precision for the numerical
problems is 4 digits after the decimal point. If you leave t
Macro 2201: Answer Key 7
Lectures 14&15
Grading scale: 100
Question 1 (25pts) [a] Given the consumption function C = 100 + 0.75
(Y T ) nd the M P C , the government-purchase multiplier Y /G,
and the tax multiplier Y /T .
[b] Given the consumption functio
Macro 2201: Answer Key 8
Lectures 16&17
Grading scale: 100
Question 1 (50pts) Consider the economy of Hicksonia.
a. The consumption function is given by
C = 200 + 0.75(Y T ).
The investment function is
I = 200 25i
Government purchases and taxes are both 1
Intermediate Macroeconomics 2201: Lecture 10
Small Open Economies
Monday 02/09
We bring now an added element of realism to our model: international trade. In
this lecture we begin the analysis of the
Small Open Economy. The key feature of
the SOE is that
I ,~
[1Jrém j
1
M; 614k] QXPMMCX) dune] Imparzg) W W2
MWM» Na admitch
gag/Wm 2., 9,
CK (1L9 red {axiom/Lil) i'si 1
$9ng %{ %®&§ (6103941)
Z: (:11in f
E 2: (iv-Hi C4 m é®+>< Dremmda 01 Acmegje WMS
Nam Wm)
4M am (319an (2.11m,«myI , (xx/Q, Wyz "HS?! 1L~Q1'
Intermediate Macroeconomics 2201: Lecture 19
Business Cycles.
Wednesday 03/25
In this lecture we nally use the AS-AD
model to explain recessions and expansions,
which you surely remember was the point of
the short-run theory. Before moving on it
is import
Intermediate Macroeconomics 2201: Lecture 11
Policy in Small Open Economies.
Wednesday 02/11
In this lecture we answer the question
we have left open in the previous lecture:
how is the equilibrium established in a small
open economy? Then we will start t
Intermediate Macroeconomics 2201: Lecture 12
Large Open Economies in the Long Run
Monday 02/23
r . In other words, the discrepancy r > r is
wiped away by a capital inow. Through
a symmetric argument, when r < r there
must be a capital outow, and such ow
l
Intermediate Macroeconomics 2201: Lecture 13
The Short Run and the Keynesian Cross.
Wednesday 02/25
At
this
point
you
know
how
market
ther a very satisfactory nor successful ap-
economies behave in the long run. As valu-
proach.
able as this information i
Intermediate Macroeconomics 2201: Lecture 16
The IS-LM equilibrium.
Monday 3/9
In this lecture we establish the existence
Therefore the ISLM general equilibrium
of a general equilibrium, i.e. a situation in is a solution to the system of two equations
whi
Intermediate Macroeconomics 2201: Lecture 8
Structural Unemployment. The Quantity Theory of Money.
Monday 01/26
In this lecture we address a further issue level at which the supply of labor equals its
about structural unemployment and then demand.
we begi
Intermediate Macroeconomics 2201: Lecture 7
Economic Policy in the Long Run.
Wednesday 01/21
In this lecture we start with the study of
the eects of scal policy in the long run.
Then we turn to a troubling aspect of the
neo-classical model: according to o
U40 11; Cka02 2%) We, Karma! ihe LiQPMMIWLmmV 00 Y»
M
wad E (Mama aw/P CUM} WadeZW Cami/1m}- WWeacih
W him We hazel, P wad w Cgmgfszi ,(jw [/0 Show? mm. 1
A) W . Wl We WP (Ix/ml MOT/J (0 (ix/1d W
mexgvzi
,Mlemm Run: Aelwmmmjmm
[WWW mg
Practice Questions for Midterm-2
(It is expected that you will read the whole syllabus. This practice questions are indicative)
Q1. Briefly define the following:
Nominal versus real exchange rate, The Marshall-Learner condition, The J-curve, MundellFlemin
Answer key
Practice Questions for Final (also see Mid-term 1 and 2 practice questions)
(It is expected that you will read the whole syllabus. This practice questions are indicative)
Q1. Briefly define the following:
Reservation wage, Price-setting relatio
Chapter-3
The Goods Market
Q. Suppose that the economy is characterised
by the following behavioural equations
C= 160 + 0.6
Yd
I = 150
G=150
T= 100
Solve for
a. equilibrium GDP (Y)
b. disposable income (Yd)
Continued.
d. Assume output is equal to 900. Com
Intermediate Macroeconomics 2201: Lecture 3
Real GDP, Ination & Unemployment.
Friday 01/09
In this lecture we continue to learn about
the real-world measurement details for the
data on unemployment and ination.
Then we begin the study of a hypothetical st
Intermediate Macroeconomics 2201: Lecture 6
Investment and General Equilibrium.
Monday 01/19
than usual: investment the purchase
of goods and services that are used to
produce other goods or services.
As usual we will consider the problem
of investment by
Intermediate Macroeconomics 2201: Lecture 1
Macroeconomics
Monday 01/05
1
Macroeconomics
sound advice of the form: If you want to
achieve this, you should do this.
Macroeconomics is the discipline that studies economies in a dynamic setting. An
economy is
Intermediate Macroeconomics 2201: Lecture 9
The Classical Dichotomy
Wednesday 01/28
So if money is so important, how come
that we didnt bother considering it explicitly in our derivation of the neo-classical
model in Lecture 6? The answer is paradoxically