Midterm I: Suggested Solutions Econ 110 Fall 2006 100 points
USE DIFFERENT BLUE BOOKS FOR PARTS I AND II Good luck. Part I: 50 points 1. (5 points) What could lead to an increasing elasticity of money demand with respect to the interest rate? Explain. If
In signing the following, I am pledging to uphold the Duke University honor code. Signature: _ Name: _
Duke University Department of Economics Professor Michelle Connolly Spring 2010
Econ 110D: Intermediate Macroeconomics Midterm II Make sure to use a dif
Econ 110D Quiz 4
Problem 8, page 311, Williamsons Macroeconomics, 4th edition. Assume also that
U (c, c ) = mincfw_c, c .
Questions: (a), (b), nd the utility value for the consumptions values in (b), repeat (a),
(b) when t = 90, t = 0.
Solution:
The lifet
Midterm I Econ 110 Fall 2006 100 points
USE DIFFERENT BLUE BOOKS FOR PARTS I AND II Good luck. Part I: 50 points 1. (5 points) What could lead to an increasing elasticity of money demand with respect to the interest rate? Explain. 2. (5 points) The Fed ha
TA section 05
April 5, 2009
The representative household maximizes following lifetime utility
1 X t=0 t
[log ct + log (1
lt )]
This household determines how much to consume, own capital and supply labor each period and source of income is the wage accordi
TA section 05
March 28, 2009
The representative household maximizes following lifetime utility
1 X t=0 t
[log ct + log (1
lt )]
This household determines how much to consume, own capital and supply labor each period and source of income is the wage accord
TA section 05
March 1, 2009
Imagine an economy where the representative agent preferences are log c1 + log (1 l1 ) + [log c2 + log (1 l2 )]
and he or she chooses to decide how much to consume and work in period 1 and 2. The representative agent has a sour
TA section 05
March 4, 2009
Imagine an economy where the representative agent preferences are log c1 + log (1 l1 ) + [log c2 + log (1 l2 )]
and he or she chooses to decide how much to consume and work in period 1 and 2. The representative agent has a sour
TA section 05
February 27, 2009
Imagine an economy where the representative agent preferences are log c1 + log (1 l1 ) + [log c2 + log (1 l2 )]
and he or she chooses to decide how much to consume and work in period 1 and 2. The representative agent has a
TA section 04 solution
February 16, 2009
1
Neoclassical Growth problem with labor
Social planner' problem in per capita term is the following: s max
1 X t=0 t t
fct ;kt+1 ;lt g
(log ct + log (1
1
lt )
ct + kt+1
= kt
(1 + g) lt
+ (1
) kt
1.1
Lagrangian set
TA section 04
February 15, 2009
1
Neoclassical Growth problem with labor
Social planner' problem in per capita term is the following: s max
1 X t=0 t t
fct ;kt+1 ;lt g
(log ct + log (1
1
lt )
ct + kt+1
= kt
(1 + g) lt
+ (1
) kt
1.1 1.2
Lagrangian setup FO
Econ 110 TA section 3
February 9, 2009
1. Assume that the household' utility at time t is given by s u (ct ; lt ) = ln (ct ) + with > 0 and (1 lt )1
1
> 0. Also, assume that the household' lifetime utility is given by s U (c1 ; c2 ; l1 ; l2 ) = u (c1 ; l1
Economics 110D: Macroeconomic Theory
Time of Class: MW 10:05 AM-11:20 AM Room: 139 Social Sciences Building Instructor: Professor Juan Rubio-Ramrez. Head TA: Tae Bong Kim (Ph. D student in economics). O ce: 232 Social Sciences Building Phone: (919) 660-18
1. Firm maximizes max
L
= pA (L
F)
w (L + F )
2. Cost function = w (L + F ) 3. MC = w . Constant marginal cost. w 4. AC = w(L+F ) . @AC = (L F1)2 . If w > 1 then economy of scale fails but L F @L if w < 1 then there is economy of scale. 5. max
L
= pA (L =
Homework 3 Intermediate Macro
1. (2 points) Go back to the BEA webpage and get annual data on Fixed Assets of the U.S. (be careful, get data in real terms!)1 , hours worked (unfortunately the data for hours is divided in 3 tables: 6.9B, 6.9C, and 6.9D: yo
Homework 2.1 Intermediate Macro
President Barack Obama' ambitious goal of cutting the federal de.cit is calling for a s de.cit of about $530 billion in four years while today' de.cit is of around $1500 billions. s Obama has established this marker by whic
Homework 2 Intermediate Macro
We do not have much time in class to discuss the institutional details of .scal and monetary policy. Fortunately, there is much information on the web where you can learn about these details. 1. (5 points) You must prepare a
Midterm II: Suggested Solutions Econ 110 Fall 2006 100 points
PART I: 50 POINTS 1. (6 points) Is it true that higher real interest rates are always associated with lower equilibrium levels of investment? Explain why it is so, if true, or give a counterexa
Midterm II Econ 110 Fall 2006 100 points
USE DIFFERENT BLUE BOOKS FOR PARTS I AND II Good luck. PART I: 50 POINTS 1. (6 points) Is it true that higher real interest rates are always associated with lower equilibrium levels of investment? Explain why it is
Bernanke Outlines Exit Strategy - WSJ.com
Page 1 of 2
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Econ 110D Quiz 3
Problem 14, page 144, Williamsons Macroeconomics, 4th edition.
Solution: If we take zG(K, N ) to be the new output production function, then zG(K, N )
N
xN
zF (K, 1+x ), because if N is the labor required, we know that a fraction 1+x is
Econ 110D Quiz 2
Question: A consumer has utility U (C, l) = C 2 l2 . His time endowment is h. He gets
dividends and pays taxes T . The market wage is w, taken as a given. Draw a typical
indierence curve. Find his optimal consumption-leisure choice. (You
Econ 110D Quiz 1
Question: Problem 6 (a), Chapter 2, in Williamsons Macroeconomics
Solution:
(i) The product approach: GDP = $150 m, because the only production is of the 30 m
bushels of corn.
(ii) The expenditure approach: C = $100 m, I = $25 m, G = $25
Question 1: Two products, a and b, are produced in an economy, in years 1, 2 and
a
b
3. The quantities and prices in year 1 are P1 = P1 = Qa = Qb = 1. In year 2, we have
1
1
a
a
b
b
a
b
P2 = 1, Q2 = 2, P2 = 2, Q2 = 1. In year 3, P3 = 2, Qa = 3, P3 = 3, Qb
Recommended practice problems for ECON 110D, from the book Macroeconomics, by
S. D. Williamson. Dont focus on one chapter in particular. Instead, try to do a few from
each. The rst problems may be easier.
Midterm: For this exam, be aware of the key busine
Question 1: Let U (c, c ) = c c . (a) Find the graph of c (c) that describes the indif(
ference curve with utility 1. (b) Find the derivative dcdcc) . (c) Do you think this indierence
curve ts the assumptions we made about indierence curves? Plot one ind
Econ 110D
Sergiu Ungureanu
Summer II, 2011
1. (15 points) Consider a small economy in which a cattle ranch owns 10,000 cattle, which give birth to
500 more each year. The 10,000 cattle also produce 500,000 gallons of milk, at a market price of $2
per gall
Econ 110D Assignments
updated June 5, 2012
The book referred is Williamsons Macroeconomics (4th ed.) Homework should be submitted before class time in the following lecture.
HW 1, May 18th: Problems 4,7 from chapter 1. Due May 21st.
HW 2, May 18th: Prob
Econ 110D
Sergiu Ungureanu
Summer I, 2012
MIDTERM EXAM
Answer each of the questions below. The questions are ordered by subject, not diculty. You have 75
minutes to complete the exam. Good luck.
1. (35 points) Consider a small economy in a year. In this e
J ournal of Economic Literature Vol. XXVIII (December 1 990), pp. 1645-1 660
A Quick Refresher Course Macroeconomics
BY
N . G REGORY ANKIW
M
Harvard University and NBER
This paper, though new, draws heavily on my previous paper, "Recent Developments in