LSE Economics Department
EC210 Macroeconomic Principles 2012/2013
Michaelmas Term
Rachel Ngai
S675, x7017
[email protected]
Problem Set 6: to be handed to class teachers in week 8
1. Short question, Exam 2007 : Consider two countries that have experienced
LSE Economics Department
EC210 Macroeconomic Principles 2013/2014
Michaelmas Term
Rachel Ngai
32L.1.15, x7017
[email protected]
Problem Set 2: Microeconomic Foundations
1. Microeconomic foundations : Consider the neoclassical model from lectures in which
c
LSE Economics Department
EC210 Macroeconomic Principles 2013/2014
Michaelmas Term
Rachel Ngai
32L.1.15, x7017
[email protected]
Problem Set 1: Measurement
1. Gross domestic product : In year 1 and year 2, two products are produced in a given
economy, bicyc
LSE Economics Department
EC210 Macroeconomic Principles 2012/2013
Michaelmas Term
Rachel Ngai
32L.1.15, x7017
[email protected]
Problem Set 9: Unemployment
1. The eciency wage model :
(a) What is the conceptual dierence between unemployment accounted for b
LSE Economics Department
EC210 Macroeconomic Principles 2012/2013
Michaelmas Term
Rachel Ngai
S675, x7017
[email protected]
Problem Set 7: Consumption
1. Household optimality conditions : Suppose that an agent has only current income y1
and is expecting to
LSE Economics Department
EC210 Macroeconomic Principles 2012/2013
Michaelmas Term
Rachel Ngai
32L.1.15, x7017
[email protected]
Problem Set 10: to be handed to class teachers in week 2 LT
1. Short question, 2012 Exam : Some economists have found a negative
Addendum to PH101 Notes:
Using the Semantic Tree Method to decide whether a single sentence is (a) a contradiction,
(b) a tautology or (c) a contingent sentence
1. Contradictions The semantic tree method searches systematically for an assignment of
truth
Problem set 3 EC315 MT
1) Pricing to market and incomplete pass-through with linear demand.
Consider a monopolistic competition framework in which each rm faces the
following linear demand function:
y(i) = a b (p(i)
a) Assume that the production function
Addendum to PH101 Notes:
Using the Semantic Tree Method to decide whether a single sentence is (a) a contradiction,
(b) a tautology or (c) a contingent sentence
1. Contradictions The semantic tree method searches systematically for an assignment of
truth
Problem set 3 EC315 MT
1) Pricing to market and incomplete pass-through with linear demand.
Consider a monopolistic competition framework in which each rm faces the
following linear demand function:
y(i) = a b (p(i)
a) Assume that the production function
1. Construct the semantic tree for the sentence
(p v q) & (p & q)
What do you notice about the tree?
2.Show, using semantic trees, that the sentence
(p q) (p & q)
Is a contradiction.
3. Show, using the method of semantic trees, that the following sentence
1. Construct the semantic tree for the sentence
(p v q) & (p & q)
What do you notice about the tree?
2.Show, using semantic trees, that the sentence
(p q) (p & q)
Is a contradiction.
3. Show, using the method of semantic trees, that the following sentence
Problem set 1 EC315 Michaelmas Term
1) People sometimes talk about twin decits, where the twins are the
current account and the government budget decit. Explain how these two
decits are related economically so that changes in one are reected in changes
in
LSE Economics Department
EC210 Macroeconomic Principles 2012/2013
Michaelmas Term
Rachel Ngai
S675, x7017
[email protected]
Problem Set 8: Investment, Consumption and the Financial Crisis
1. A Nobel prize-winning economist, James Tobin (1918-2002) theorise
Handout 12
Handout
Unemployment
Unemployment
Slide #1
Labour Market
Topics:
Topics:
Labour Market Measurement and patterns in
the OECD
Theories of Unemployment
The efficiency wage model
A search model of unemployment
Slide #2
Labor Market Measurement
Labo
Handout 9
Handout
Consumption
Consumption
In the Solow model, we assume consumers
save a fixed fraction of income.
Here we analyze the optimal consumption-
saving decision.
Its closely related to the optimal decision in
the one-period model: saving is
Handout 4
Growth Facts
Slide #1
The Facts of Growth
Topics:
Topics:
Measuring Growth
Why growth matters
Growth Facts
Convergence
Slide #2
The Facts of Growth
Hall and Jones 1999, QJE "In 1988 output
per worker in the United States was more
than 35 ti
Handout 5
The Malthusian
Model
Slide #1
Notation
In most of the discussions, we do not distinguish
between the size of population and the size of labor
force, i.e. total population is equal to the number of
workers.
Upper case variables stand for aggregat
Handout 7
Beyond the Solow Model
Slide #1
Beyond the Solow Model
Topics:
Topics:
Why doesnt capital move from rich to poor
countries?
Growth Accounting
Development Accounting
Why is there technological progress?
The AK model
Slide #2
Beyond the Solow
Handout 6
The Solow Model
Slide #1
The Basic Solow Model
Topics
Topics
The basic Solow model
The
dynamics of capital accumulation
Effects
of changes in the saving rate,
population growth rate and total factor
productivity.
The Solow model with technol
Handout 1
Handout
Overview
Overview
Topics
Topics
Macroeconomic models.
Economic growth and business cycles.
Slide #2
Overview
Macroeconomics is the study of the
economy as a whole
Models built to explain
macroeconomic phenomena.
Important phenomena are l
Handout 2
Handout
Measurement
Measurement
Topics
Topics
Measuring GDP
Price indices comparing real GDP
across time and countries
Slide #2
Measuring GDP
Three approaches:
1. the product approach;
2. the expenditure approach;
3. the income approach.
Slide #
Handout 8
Endogenous Growth
Models
Slide #1
Endogenous Growth Models
Topics
Topics
Endogenous Growth Learning by doing
Endogenous Growth Human capital
Endogenous Growth research and
development
International technology transfer
Slide #2
Learning by Do
Handout 11
Handout
Investment
Investment
Topics
Topics
Current versus expected profit
Marginal product of capital and user cost of
capital
Stock market and investment: Tobins q
Investment and Asymmetric Information
Slide #2
Investment
Three different
Handout 13
Issues in the Labour
Market
Slide #1
Issues in Labor Market
Topics
Topics
Unemployment differences across OECD
Wage inequality
Sectoral shifts from manufacturing to
services
Rise in female employment rate
Slide #2
Unemployment
Differences a
Problem set 2
EC315
Michaelmas Term
This problem set is based on the intertemporal approach to the current
account (reference oprint: P9850)
1) Consider now a two-country endowment economy in which equilibrium
holds when S1 + S1 = 0. Homes utility functio