Indifference curves
Luc Hens
An indifference curve is a set of combinations of two goods (Dpizza , Dbeer )
that leave an individual equally well off (figure 1).
(1,16)
Quantity of beer
15
10
(2,8)
5
(10,1.6) (11,1.5)
0
0
5
10
15
Quantity of pizzas
Figure
PROBLEM SET: ECONOMICS GROWTH 1
Question for Review
1. In the Solow model, how does the saving rate affect the steadystate level of
income? How does it affect the steadystate rate of growth?
2. Why might an economic policymaker choose the Golden Rule le
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ERC Working Paper in Economic 03/10
November 2003
Testing The Quantity Theory of Money in
Greece: A Note
Erdal zmen
Department of Economics
Middle East Technical University
Ankara 06531, Turkey
[email protected]
Economic Research Center
Middle East Techni
M PRA
Munich Personal RePEc Archive
Testing for Granger causality between
stock prices and economic growth
Pasquale Foresti
2006
Online at http:/mpra.ub.unimuenchen.de/2962/
MPRA Paper No. 2962, posted 26. April 2007
Testing for Granger Causality Between
Working Paper 892
Cointegration and a Test of the
Quantity Theory of Money
Yash P. Mehra
Federal Reserve Bank of Richmond
P.O. Box 27622
Richmond, VA 23261
8046978247
April 1989
thanks William Cullison, Michael
*Research Officer and Economist. The auth
DP/01/2009
(English Version)
BANK OF THAILAND
DISCUSSION PAPER
Monetary Policy and Underlying Inflation Pressures:
The Essence of Monetary Policy Design
By
Atchana Waiquamdee, Pranee Sutthasri, and Surach Tanboon
February 2009
EMail Address: [email protected]
DP/01/2009
(English Version)
BANK OF THAILAND
DISCUSSION PAPER
Monetary Policy and Underlying Inflation Pressures:
The Essence of Monetary Policy Design
By
Atchana Waiquamdee, Pranee Sutthasri, and Surach Tanboon
February 2009
EMail Address: [email protected]
Board of Governors of the Federal Reserve System
International Finance Discussion Papers
Number 941
August 2008
Optimal Monetary Policy with Distinct Core and Headline Inflation Rates
Martin Bodenstein
Christopher J. Erceg
and
Luca Guerrieri
NOTE: Interna
Wo r k i n g Pa P e r S e r i e S
no 1062 / June 2009
external
ShockS and
international
inflation
linkageS
a global Var
analySiS
by Alessandro Galesi
and Marco J. Lombardi
WO R K I N G PA P E R S E R I E S
N O 10 62 / J U N E 20 0 9
EXTERNAL SHOCKS AND
IN
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PROBLEM SET: Growth 2
1. Suppose an economy described by the Solow model has the following
production function:
= 1/2 ()1/2
a. For this economy, what is ()?
b. Use your answer to part (a) to solve for the steadystate value of y
as a function of s, n,
PROBLEM SET: ECONOMICS GROWTH 1
Question for Review
1. In the Solow model, how does the saving rate affect the steadystate
level of income? How does it affect the steadystate rate of growth?
2. Why might an economic policymaker choose the Golden Rule le
1
Conduct of Monetary Policy:
Strategies and Tactics
Central Banks Goal in contemporary: Price Stability
Other goals are
 high employment and output stability (consider natural rate of
unemployment, and fullemployment level)
 economic growth
 stabil
Microeconomic Theory II
Exercise 4: General Equilibrium (Exchange)
1. Franks utility function is U ( x1 , x 2 ) x1 x 2 and Maggies is
U (x1, x2 ) mincfw_x1, x2 )
.
Franks initial endowment is 0 units of good 1 and 10 units of good 2. Maggies initial
endow
Exercise 3
Microeconomic Theory 2
Question 1 (5 Marks)
Sanya and Mam work in a textile factory. Mam gets $5 an hour for the first 40 hours
that she works and $7 an hour for every hour beyond 40 hours a week. Sanya gets $6 an hour
no matter how many hours
1
Why Fed pas interest on reserves : ior
1. Without ior, there is high cost of holding reserves, then banks have incentives to
reduce them even reducing the required reserves every night.
With ior , lower opp.cost to hold reserves, less unnecessary transa
Microeconomic Theory II
Exercise 9: Game Application (2)
1. Lets have another look at the soccer example that was discussed in the text. But this
time, we will generalize the payoff matrix just a little bit. Suppose the payoff matrix is as
follows.
The Fr
Exercise (Externality)
1. The picturesque village of Horsehead, Massachusetts, lies on a bay
that is inhabited by the delectable crustacean, homarus americanus,
also known as the lobster. The town council of Horsehead issues
permits to trap lobsters and i
Microeconomic Theory II
Exercise 11: Asymmetric Information
1. In West Bend, Indiana, there are exactly two kinds of workers. One kind has a
(constant) marginal product worth $10 and the other kind has a (constant) marginal
product worth $15. There are eq
Microeconomic Theory II
Exercise 10: Externality and Public Goods
1. The picturesque village of Horsehead, Massachusetts, lies on a bay that is inhabited by
the delectable crustacean, homarus americanus, also known as the lobster. The town
council of Hors
Microeconomic Theory II
Exercise 1: Revealed Preference
1. Here is a table of prices and the demands of a consumer named Ronald whose
behavior was observed in 5 different priceincome situations.
Situation
A
B
C
D
E
P1
1
1
1
3
1
P2
1
2
1
1
2
X1
5
35
10
5
Assignment II: Microeconomic Theory II
Hand in on Thursday 27 Nov. in class.
Question 1
Let there be 2 individuals A and B, and two goods,
function is given by
x 2 . Consumer
A s utility
u A ( x 1 A , x 2 A ) =x 1/1 A2 x 1/2 A2 , consumer B s utility func