Problem Set 1: Answer Key
EC 202, Summer 2011
Problem 1: Intertemporal Choice
Consider the 2period neoclassical consumption model with a representative agent.
(1) Write down the Euler equation. Explain it.
The Euler equation is:
u (c1 ) = (1 + r)u (c2 )
Economics 202: Intermediate Macroeconomic Analysis
Spring 2016
First Midterm Exam Practice Questions
1. Using the information in the table below (where 2011 is the base year).
a) Compute real GDP in the base and later years (in baseyear prices)
b) Comput
Economics 202: Intermediate Macroeconomic Analysis
Spring 2016
First Midterm Exam Solutions
1. (20 points) Using the information in the table below (where 2011 is the base year).
2011
Price
Quantity
2012
Price
Quantity
Good A
$4
20 Good A
$7
20
Good B
$2
EC202D, Exam 1
10/08/2015
Name:
General Instructions
The exam has two parts, 10 multiple choice questions (worth 1 point each) and 3 short
answer questions (value given below and on each part of those questions). No partial credit
will be given for multip
Summer 2016  EC202  Problem Set 2
Textbook Questions
Chapter 10 Question 2
Assume that the average consumer in Mexico and the average consumer in the United States buy
the quantities and pay the prices indicated in the following table:
Mexico
U.S.
Food
Spring 2016  EC202 Sections E  Problem Set 1
Textbook Questions
Chapter 2 Question 2
Suppose you are measuring annual U.S. GDP by adding up the final value of all goods and services
produced in the economy. Determine the effect on GDP of each of the fol
Chapter 5
Problems and Applications
1. The real interest rate is the difference between the nominal interest rate and the
infla tion rate. The nominal interest rate is 11 percent, but we need to solve for the
inflation rate. We do this with the quantity
World Growth and the Financial Crisis
The United States
The European Union
China
What about Japan?
Intermediate Macroeconomic Theory
Introduction  A Tour of the World
Andre Switala
January 29, 2016
Andre Switala
Intermediate Macroeconomics
World Growth a
EC202 INTERMEDIATE MACROECONOMICS
Prof. Regina Celia Cati (Email: [email protected])
Exercise Set #5
Due: 11/13/2013
The following problems are included in this exercise set:

From Mankiws book (8th edition), chapter 10, page 301, problems and applications
1
Economics 202: Intermediate Macroeconomic Analysis
Spring 2016
Problem Set 4 Solutions
1) Mankiw and Balls book: Chapter 7, question 1 (page 221).
a) A production function has constant returns to scale if increasing all factors of production by an
equal p
Boston University
Department of Economics
EC202 B1 Intermediate Macroeconomic Analysis
Syllabus
Fall 2013
Prof. Regina Cati
Office: 264 Bay State Rd. # 539
Phone: (617) 3534249
Email: [email protected]
Lecture: Mon, Wed and Fri
11:00 AM 12:00 PM (KCB106)
Of
Problem Set 2: Answer Key
EC 202, Summer 2011
Problem 1: Investment
(1) Write down the equation that describes the optimal choice of capital for the rm. Explain it.
The equation is:
MPK = r +
The equation above determines the rms optimal level of capital
Problems and Applications
1. Money functions as a store of value, a medium of exchange, and a unit of
account.
a.
A credit card is not money, it is a debt. We pay with the creditcard but credit card
is not a medium of exchange (some books will assume tha
EC202: Review for the Second Exam (Mar. 18, 2015)
Please bring your calculator.
Please go over all the assigned homework questions.
Review all the numerical examples that we went over in the class.
Go over all the cases that we discussed in the class.
CH.
Spring 2016  EC202 Section E  Problem Set 2
Textbook Questions
Chapter 1 Question 3
Chinese economic growth is the outstanding feature of the world economic scene in the last 2
decades.
a.
In 2010, U.S. output was $14.7 trillion, and Chinese output was
Fall 2015  EC202 Sections D  Problem Set 3 Solutions
Textbook Questions
Chapter 10 Question 3
Consider the production function:
Y =
Y K
a.
Compute output when K = 49 and N = 81.
Solution:
Y =
49 81 = 7(9) = 63
b.
If both capital and labor double, wh
Fall 2015  EC202 Sections D  Problem Set 2 Solutions
Textbook Questions
Chapter 1 Question 3
Chinese economic growth is the outstanding feature of the world economic scene in the last 2
decades.
a.
In 2010, U.S. output was $14.7 trillion, and Chinese ou
EC202 Fall 2015 Midterm 2 WITH Answers
1) Which of the following occurs as the economy moves leftward along a given IS curve?
A) an increase in the interest rate causes investment spending to decrease
B) an increase in the interest rate causes money deman
CAS EC 202 B1
Intermediate Macroeconomic Analysis
Fall 2015
Class time
Class Location
Course webpage
Required Text
General Information
Mondays, Wednesdays and Fridays from 11:00 11:50 am
KCB 106
On Blackboard
Macroeconomics: Theories and Policies by Richa
Fall 2015  EC202 Section D  Problem Set 5
Textbook Questions
Chapter 12 Question 4
For each of the economic changes listed in (a) and (b), assess the likely impact on the growth rate
and the level of output over the next five years (the initial impact)
NAME _
BU ID _
EC102AA, Midterm 1
ECON 102 AA: Introductory Macroeconomic Analysis
Olivetti/Gilchrist
FIRST MIDTERM EXAM, Version 1
October 6th, 2011
This exam contains 40 multiple choice questions.
Identify the letter of the choice that best completes th
EC202C1
Exam 1
EC202C1, Exam 1
3/2/2016
3/2/2016
Page 1 of 8
Name:
The exam has two parts, 15 multiple choice questions (worth 2 points each) and 9 short
answer questions (value given below and on each part of those questions). No partial credit
will be
EC202C1, Exam 1
10/22/2015
Name:
The exam has two parts, 12 multiple choice questions (worth 2 points each) and 7 short
answer questions (value given below and on each part of those questions). No partial credit
will be given for multiple choice question
Fall 2015  EC202 Sections D  Problem Set 1 Solutions
Textbook Questions
Chapter 2 Question 2
Suppose you are measuring annual U.S. GDP by adding up the final value of all goods and services
produced in the economy. Determine the effect on GDP of each of
Background of Keynesian Economics
The Great Depression during 1930s :
 Huge unemployment
 Low level of private investment spending
Classical Solution to the Depression :
Wage cut
Keynes View on the Depression
During 19291933, private investment fell by
CH. 6 The Keynesian System II : The ISLM Model
influence of interest rates on aggregate demand
simultaneous determination of equil. interest rates and equil. income
1. Role of Money
classical view : (perfectly flexible P and W)
M AD
P and W in propo
CH 4. Money, Prices and Interest in Classical Economics
4. Quantity Theory of Money
(1) Equation of Exchange
MV Py
M : money stock
V : income velocity of money
(the number of times the average dollar is used in transacting
current output)
P : price level
CH. 7 Policy Implications of the ISLM Model
1. Changes in Equilibrium Y and r
(qualitative analysis)
Any factor that shifts the IS or LM curve changes equil. Y and r.
(1) Monetary Policy
M Y and r ; Why?
M for a given r0, ES of money;
for money mkt to be
Beliefs of Classical Economists
Selfadjusting market mechanism
(invisible hand)
Money is neutral :
focus is on real factors
(e.g., productivity and real output).
In the aggregate, supply of output creates its own demand.
(AS AD)
Outline of the Classic
Chapter 10 The Facts of Growth
Growth: the steady increase in aggregate output over time.
10.1 Measuring the Standard of Living
The OECD countries (rich countries). All start at high levels of output per
person and then converges.
Four tigers (Singapore,
Macroeconomics
EC 202 Problem Set 2
October 19, 2016
1. Draw and explain a yield curve. Why does it have the shape it has? [5 points]
a.
2. The economy is approaching full employment. Policymakers begin to worry that actual GDP
may exceed potential GDP an
Macroeconomics
EC 202 Problem Set 3
November 14, 2016
1. Show using equations that the Cobb Douglas production function has
a.
Constant returns to scale
b.
Positive but declining marginal products of capital and labor
c.
That and (1) are the share of out
Economic Growth: Solow Model
Growth depends on saving and investment, population growth, technology (A)
Production function
Y = F(K, L) = A K L 1
Constant returns to scale in K and L when both increase
xY = A F(xK, xL)
x>1
Diminishing marginal product of