Econ 105A Fall 2013
Discussion Session: Week 2 (Oct.2, 3)
TEXTBOOK: Ch.2 Questions and Problems #1.b,c,d,e,h
Ch.3 Questions and Problems #2, 3
1. Suppose the United States economy is represented by th
Econ 105A Fall 2013
Discussion Session 1: Week 2 (Oct.2, 3)
1. Suppose the United States economy is represented by the following equations:
Z =C +I +G
C = 300 + 0:9YD
YD = Y
G = 2000
T
T = 1000
I = 20
Econ 105A Nov 6, 7
Discussion 6
1. Suppose that the relationship between inflation rate () and unemployment rate () is
described by the following equation:
= ( + )
where = 0.1, = 0.05 and = 3. I
Econ 105A Nov 13, 14
Discussion 7
1. Given the production function and the depreciation rate ()
p p
Yt = 0.4 Kt N .
= 0.1.
(a) find the steady-state levels of K/N and Y /N (they will be a function of
Econ 105A Fall 2013
Discussion Session 2: Week 3 (Oct.9, 10)
TEXTBOOK: Ch.5 Questions and Problems #3
Chapter 4
1. Use the information provided below to answer the following questions:
R = 50
CU = 250
Econ 105A Oct 23, 24
Discussion 4
1. Suppose the economy is initially operating at Yn . Now suppose G increases.
(a) Use the graph below to illustrate the initial equilibrium, dynamic adjustment, and
Econ 105A Nov 27, 28
Discussion 9
1. Suppose P and P are both increasing. Now suppose that the dollar experiences a 5%
nominal depreciation.
(a) Which country is experiencing the higher rate of inflat
Econ 105A Oct 16, 17
Discussion 3
1. For the following values of m, calculate the real wage.
(a) m = 0:1; 0:2; 0:3 and 0:4.
Simply plug the numbers into the equation W=P = 1=(1 + ): :91; :83; :77 and:
Econ 105A Nov 20, 21
Discussion 7
1. Use the graph provided below to answer the following questions.
1. (a) Graphically illustrate the eects of a reduction in the saving rate.
(b) Explain what happens
Econ 105A Nov 20, 21
Discussion 7
1. Use the graph provided below to answer the following questions.
1. (a) Graphically illustrate the eects of a reduction in the saving rate.
(b) Explain what happens
Econ 105A Fall 2013
Discussion Session 2: Week 3 (Oct.9, 10)
TEXTBOOK: Ch.5 Questions and Problems #3
Chapter 4
1. Use the information provided below to answer the following questions:
R = 50
CU = 250
Econ 105A Nov 27, 28
Discussion 9
1. Suppose P and P are both increasing. Now suppose that the dollar experiences a 5%
nominal depreciation.
(a) Which country is experiencing the higher rate of inatio
Econ 105A Oct 16,17
Discussion 3
1. For the following values of m, calculate the real wage.
(a) m = 0:1; 0:2; 0:3 and 0:4.
(b) What happens to the real wage as m increases?
(c) Explain why the real wa
Econ 105A Dec 4, 5
Discussion 10
1. For each of the following events, assume that the goods market is initially in equilibrium
and that a trade surplus exists (N X > 0) at the initial level of output.
Econ 105A Dec 4, 5
Discussion 10
1. For each of the following events, assume that the goods market is initially in equilibrium
and that a trade surplus exists (N X > 0) at the initial level of output.
Econ 105A Nov 13, 14
Discussion 7
1. Given the production function and the depreciation rate ( )
p p
Yt = 0:4 Kt N :
= 0:1:
(a) nd the steady-state levels of K=N and Y =N (they will be a function of t
Selected topics from
Chapter 9
Tasneem Raihan
[email protected]
Required background concepts
Asymmetric information problem: One party knows more than
the other party involved in a transac
Midterm Examination (40 points, 50 minutes)
Don't write in cursive. Please, print your answers.
1. a. Foreign official holdings of U.S. Treasuries increased from $400 billion in January
1994 to about
Chapter 9
Financial Crises
http:/www.youtube.com/watch?v=qqUGoVez8xg
Bank Run
The Financial Crisis of 2007-2009
Causes of the housing boom
1. Financial innovations emerge in the mortgage markets
Mor
Econ105A, Dongwon Lee
Lecture 10: Ch.10 The Facts of Growth
Growth (steady increase in aggregate output Y over time) dominates the determination of
output in the long run.
10.1 Measuring the Standard
Econ105A, Dongwon Lee
Lecture 6 & 7: Ch.7 The AS-AD Model
The AS-AD model allows us to look at the determination of output in both the short run and
the medium run.
7.1 Aggregate Supply
The aggregate
Econ105A, Dongwon Lee
Lecture 15: Ch.19 The Goods Market in an Open Economy
Nowadays, a recession in one country can affect the economy of other countries through
spillover effects. This chapter intro
Econ105A, Dongwon Lee
Lecture 9: Ch.9 The Crisis
What caused the global recession, how effective was the policy response, and what is the
outlook for the recovery?
9.1 From a Housing Problem to a Fina
Econ105A, Dongwon Lee
Lecture 8: Ch.8 The Phillips Curve
The Phillips curve shows a negative relation between inflation and unemployment.
8.1 Inflation, Expected Inflation, and Unemployment
We introd
Econ105A, Dongwon Lee
Lecture 4: Ch.5 The IS-LM Model
5.1 The Goods Market and the IS relation
In practice, investment depends primarily on two factors: Y and i. Firms increase investment
as there is
Econ105A, Dongwon Lee
Lecture 3: Ch.4 Financial Markets
4.1 The Demand for Money
Suppose there are only two assets, money and bonds:
Money (= currency + checkable deposits) pays no interest;
Bonds pa
Econ105A, Dongwon Lee
Lecture 5: Ch.6 The Labor Market
6.0 Transition from the Short-Run to the Medium-Run
The price level P is fixed in the IS-LM model, which is thus called a short-run
macroeconomi
Econ105A, Dongwon Lee
Lecture 14: Ch.18 Openness in Goods and Financial Markets
18.1 Openness in Goods Markets
18.1.1 Degree of Globalization
Growth in Different Countries since 2005
U.S. Exports an
Econ105A, Dongwon Lee
Lecture 11: Ch.11 Saving, Capital Accumulation, and Output
One lesson from Ch.10; Even if the saving rate does not permanently affect the growth rate, it
does affect the level of