Professor Salyer, Economics 137, Spring 2014
Economics 137
Macroeconomic Policy
Course Description: This course will study the theory of macroeconomic policy. First we will examine some
issues in the
Professor Salyer, Economics 137, Spring 2005
Homework #4, May 5
1. In discussing the history of post-WWII scal policy, Christina Romer discusses two features that have yielded an actual government bud
Kevin D. Salyer, Economics 137, Winter 2007
1
Homework #4 - Due March 8 (in Section)
1. Consider the following IS-LM model:
Y = a0 + a1 r + u
M = b 0 + b1 Y + b 2 r + v
where u; v denote random shocks
K EVIN S ALYER , ECN 137, W INTER 09 - H OMEWORK #4
1
The Lucas Critique and the Lucas Supply Curve Due 03/03 (in section)
1. In his critique of economic policy analyis, Lucas derived the following de
K EVIN S ALYER , ECN 137, FALL 2007 - H OMEWORK #4
1
Lucas Imperfect Information Model - Due 11/14 (in
class)
1. The following exercise gives you some practice in working with the Lucas model;
also, i
K. S ALYER , ECN 137, FALL 2007
1
Answers to Homework #4
1. Since the money supply process follows
mt D mt
C c C ut
N
1
(1)
this implies that the expectations of m t at time t (with u t unobservable)
K. S ALYER , ECN 137, W INTER 2009
1
Answers to Homework #4
1. The left-hand side (LHS) of the equation is the optimal desired capital stock of
the rm.
(a) The rst term on the right-hand side (RHS) re
Solutions to Homework #5
1)
Ecn 137, Winter 2007
Y = a 0 +a1r + u
M = b0 +b1Y + b2 r + v
(1)
(2)
M is the policy instrument in this problem, so that means Y and r are the endogenous variables
we need
Kevin D. Salyer, Economics 137, Spring 2005
1
Homework #5 - Due June 2 (in Section)
1. Consider the following IS-LM model:
Y = a0 + a1 r + u
M = b0 + b1 Y + b2 r + v
where u, v denote random shocks to
Kevin D. Salyer, Economics 137, Fall 2007
1
Homework #5 - Due Dec. 7 (in class)
1. Consider the following IS-LM model:
Y = a0 + a1 r + u
M = b0 + b1 Y + b2 r + v
where u; v denote random shocks to the
Kevin D. Salyer, Economics 137, Winter 2009
1
Homework #5 - Due 03/12 (in class)
1. Consider the following IS-LM model:
Y = a0 + a1 r + u
M = b0 + b1 Y + b2 r + v
where u; v denote random shocks to th
Kevin D. Salyer, Economics 137, Winter 2009
1
Homework #5 - Answer Key
1. Consider the following IS-LM model:
Y = a0 + a1 r + u
M = b0 + b1 Y + b2 r + v
where u; v denote random shocks to the goods an
Kevin Salyer, Economics 137, Spring 2004
Answers to Homework #1
1. For the US, historical data on the debt can be found at the Oce of Management and Budget (OMB) which is a division of the executive b
Professor Kevin Salyer, ECN 137, Winter 2007
HOMEWORK #1, DUE 1/25 (IN SECTION)
1. Supply the following facts (you can use either GDP or GNP for these).
Provide your sources.
a. What was the ratio of
Professor Salyer, Economics 137, Spring 2003
Homework #4 Due Thursday, June 5
This homework consists of a single task: Write an outline of the
topics covered in class. Add comments that describe how t
Professor Salyer, Economics 137, Fall 2007
Homework #3, Due October 26 in Section
.
1. A two-period Ramsey problem: Consider an economy that lasts for two periods.
Households in this economy have inco
Professor Salyer, Economics 137, Spring 2004
Homework #2, Due April 29
1. A 3-period maximization problem
Jerry lives for three periods and has utility given by:
ln c0 + ln c1 + 2 ln c2
Income in each
Professor Kevin Salyer, ECN 137, Spring 2005
HOMEWORK #1, DUE 4/14 (IN SECTION)
1. Supply the following facts (you can use either GDP or GNP for these).
Provide your sources.
a. What was the ratio of
Salyer, ECN 137
1
Homework #1, Answer Key
1. For parts (a) and (b), see the tables from the Economic Report of the
President. For parts (c) and (d), I use data from the OECD. See the tables
listed on
Professor Kevin Salyer, ECN 137, Fall 2007
HOMEWORK #2, DUE 10/15 (IN SECTION)
1. Go to the Congressional Budget O ce web page and nd the link for
Historical Budget Data.You can download this as eithe
Salyer, ECN 137, Spring 2005
1
Homework #2, Answer Key
1. For parts (a) and (b), see the tables from the Economic Report of the
President. For parts (c) and (d), I use data from the OECD. See the tabl
Professor Kevin Salyer, ECN 137, Winter 2009
HOMEWORK #2, DUE 01/20 (IN SECTION)
1. Go to the Congressional Budget Office web page and find the link for Historical Budget Data.You
can download this as
Kevin D. Salyer, Economics 137, Spring 2003
1
Homework #3 - Due May 29
1. Consider the following IS-LM model:
Y = a0 + a1 r + u
M = b0 + b1 Y + b2 r + v
where u, v denote random shocks to the goods an
Solutions to Homework #3
1)
Ecn 137, Spring 2003
Y = a 0 +a1r + u
M = b0 +b1Y + b2 r + v
(1)
(2)
M is the policy instrument in this problem, so that means Y and r are the endogenous
variables we need
Kevin D. Salyer, Economics 137, Spring 2004
1
Homework #3 - Due May 27 (in Section)
1. Consider the following IS-LM model:
Y = a0 + a1 r + u
M = b0 + b1 Y + b2 r + v
where u, v denote random shocks to
Professor Salyer, Economics 137, Winter 2009
Homework #3, Due 02/03 in Section
.
1. A two-period Ramsey problem: Consider an economy that lasts for two periods. Households in
this economy have income
Solutions to Homework #3 1) Y = a 0 +a1r + u M = b0 +b1Y + b2 r + v
Ecn 137, Spring 2004 (1) (2)
M is the policy instrument in this problem, so that means Y and r are the endogenous variables we need