Example from September 21, 2015
Assume u (x1 x2 ) = x1 x22 and the consumer faces a budget p1 x1 + x2 = w
a) Utility maximization: Solve the consumer utility maximization problem
maxx1 x22
x1 ;x2
s:t: x1
0; x2
0
p1 x1 + p2 x2 = w
p1
x2
p1
)
=
p2
2x1
p2
an
Econ6201, Problem set 1 suggested solution
1. Budget
Farmer Frank lives on 100 acres in rural New York, where he raises chickens (which
produce eggs) and grows tomatoes. Eggs and tomatoes are the only two goods that Frank
consumes. This year, Franks chick
Econ6201, Problem set 2
Let X = RL
+ in all questions, unless otherwise noted.
In addition to the relevant material on the Preferences, Utility, Choice and Demand,
you might nd useful reviewing constraint optimizations, and the concept of homogeneous
of d
Constraint Optimization
Before starting the rst part of this problem set, it is suggested that
you read about the Kuhn Tucker (K-T) method. I explain some of
it here, but do not get into the (important) technical conditions for the
method to be applicable
AP Macro: Economic Models and Graphs Study Guide
Economic Conditions
Serious Inflation
LRAS SRAS
Recession
Price
Level
LRAS SRAS
Price
Level
PL1
PL1
AD
AD
Y1 YF
YF Y1
Real GDP
Full Employment with Mild Inflation
Price
LRAS SRAS
Level
Stagflation
SRAS2 LRA
Money and Inflation
An introduction
Introduction
In this section we will discuss the quantity theory of money,
discuss inflation and interest rates, and the relationship
between the nominal interest rate and the demand for money.
The Quantity Equation
T
Pros and Cons of Fiscal Policy vs. Monetary Policy
by Marjolein van der Veen
Fiscal Policy
Pros
If use Government spending, can direct
spending towards areas in need (e.g.
infrastructure, education, etc.), and
make investments for the future.
Using a bala
CHAPTER 3
National Income:
Where It Comes From and Where It Goes
A PowerPoint Tutorial
To Accompany
MACROECONOMICS, 8th Edition
N. Gregory Mankiw
Tutorial written by:
Mannig J. Simidian
B.A. in Economics with Distinction, Duke University
1
Chapter Three
OR/MA 504
Introduction to Mathematical
Programming
Chapter 2
Modeling and Solving LP
Problems in a Spreadsheet
3-2
Introduction
Solving LP problems graphically is
only possible when there are two
decision variables
Few real-world LP have only two
decisi