Intermediate Macroeconomic Theory Sample Exam
These questions are meant to be indicative of the type of question, not necessarily of the coverage of
the exam. That is, there may be topics that are not
THE MUNDELL-FLEMING MODEL
IN THIS LECTURE, YOU WILL LEARN:
the Mundell-Fleming model
(IS-LM for the small open economy)
causes and effects of interest rate differentials
arguments for fixed vs. flo
AGGREGATE DEMAND II:
APPLYING THE IS-LM MODEL
IN THIS LECTURE, YOU WILL LEARN:
how to use the IS-LM model to analyze the effects
of shocks, fiscal policy, and monetary policy
how to derive the aggre
ECONOMIC FLUCTUATIONS
IN THIS LECTURE, YOU WILL LEARN:
facts about the business cycle
how the short run differs from the long run
an introduction to aggregate demand
an introduction to aggregate s
ECONOMIC GROWTH I:
CAPITAL ACCUMULATION AND
POPULATION GROWTH
IN THIS LECTURE, YOU WILL LEARN:
the closed economy Solow model
how a countrys standard of living depends on its
saving and population g
AGGREGATE SUPPLY
AND THE PHILLIPS CURVE
IN THIS LECTURE, YOU WILL LEARN:
two models of aggregate supply in which output
depends positively on the price level in the short
run
about the short-run tra
AGGREGATE DEMAND I:
BUILDING THE IS-LM MODEL
IN THIS LECTURE, YOU WILL LEARN:
the IS curve and its relation to:
the Keynesian cross
the loanable funds model
the LM curve and its relation to:
the
Intermediate Macroeconomic Theory Sample Exam. Solution.
(
)
()
1. The equation
is known as the IS relation. Explain in words what it
means in as much detail as possible. This includes defining C, I,
Intermediate Macroeconomic Theory Second Sample Exam
1. (25 points) The consumer price index for January 2012 was 226.665. It is expected to be 238 in
January 2013. The price of a one-year bond that w