Econ 326 Problem Set 1
Due in class on Monday, September 23.
(60 Points)
This problem set tests the knowledge that you accumulated in the rst 3 lectures. The questions are a
combination of conceptual
Econ 326 Problem Set 4
Due No Later than Noon on Friday, November 8th.
(60 Points)
This problem set tests the knowledge that you have accumulated on choice under uncertainty and production. General ru
Econ 326 Problem Set 2
Due in section on Friday, October 4.
(60 Points)
This problem set tests the knowledge that you have accumulated on utility maximization. The questions
are a combination of conce
ECON 325
Intermediate Macroeconomic Analysis
Luminita Stevens
Lecture 8
1
A Two-Period Model
The Consumption-Savings Decision
2
The Two-Period Consumption Model
Many consumers, live for 2 periods
In
Surname 1
Name:
Professor:
Course:
Date:
GDP and Business in the United States
Explain how GDP is calculated.
The gross domestic product (GDP) provides the measure of the pecuniary value of
services a
ECON 325
Intermediate Macroeconomic Analysis
Luminita Stevens
Lecture 2
1
UTILITY FUNCTION
The benefit side of consumer optimization
We want to be able to say what is better or
preferred so we have
ECON 325
Intermediate Macroeconomic Analysis
Luminita Stevens
Lecture 5
1
A Static Model of the Macroeconomy
Three agents:
1. representative consumer = stand-in for all
consumers, sells labor and buy
ECON 325
Intermediate Macroeconomic Analysis
Luminita Stevens
Lecture 6
1
Solving for the
Competitive Equilibrium
2
Competitive Equilibrium
Variables that are
determined outside
the model (taken as
gi
ECON 325
Intermediate Macroeconomic Analysis
Luminita Stevens
Lecture 1
1
INTRODUCTION
No office hours on Jan 27 and Feb 3
- Instead: 2:00-3:00 pm, Jan 28 and Feb 4
No class lectures on Mar 5 and Apr
ECON 325
Intermediate Macroeconomic Analysis
Luminita Stevens
Lecture 9
1
A Two-Period Model
The Consumers Problem
2
Consumption Optimization
Consumers utility:
, = + ( )
where (0,1) is the discount
University of Maryland
Department of Economics
Spring 2014
ECON 325
INTERMEDIATE MACROECONOMIC ANALYSIS
MIDTERM 1 SOLUTION
100 POINTS
Question 1:
,
= > 0 for all c (strictly positive MU in c)
,
= > 0
ECON 325
Intermediate Macroeconomic Analysis
Luminita Stevens
Lecture 11
1
A Two-Period Real Model
The Firm
2
The Firms Production Function
Current period:
= , ,
Future period:
= , ,
Inter-temp
ECON 325
Intermediate Macroeconomic Analysis
Luminita Stevens
Lecture 10
1
Midterm 1 (25% of final grade)
Median = 51. Mean = 53. Standard Deviation = 21.
Suggestive
Letter
Range
Count
95-100
3
A+
85
ECON 325
Intermediate Macroeconomic Analysis
Luminita Stevens
Lecture 12
1
A Two-Period Real Model
The Consumer
2
The Consumers Utility Function
Two-period utility with discount factor :
, + ,
wher
Economics 326: Preferences and
Utility
Ethan Kaplan
September 9, 2013
1
Preferences
1.0.1
Properties of Preferences
Start with choices. Choices reveal preference.
A preference relation
is a relation b
Econ 326 Problem Set 5
Due in class on Wednesday, December 11.
(60 Points)
This problem set tests the knowledge that you have accumulated on cost curves, market equilibrium,
monopoly, and monopsony. T
Economics 326
(Utility, Marginal Utility, MRS,
Substitutes and Complements )
Ethan Kaplan
September 11, 2013
1
Utility
From last lecture: a utility function U (x; y ) is said
to represent preferences
Economics 326: Expected Utility
and the Economics of
Uncertainty
Ethan Kaplan
October 9, 2013
Outline
1. Probability Theory and Expected Value
2. The Saint Petersburg Paradox
3. Expected Utility
4. De
Economics 326: Marshallian
Demand and Comparative
Statics
Ethan Kaplan
September 18, 2013
Outline
1. Utility Maximization: General Formulation
2. Marshallian Demand
3. Homogeneity of Degree Zero of Ma
Economics 326: Duality and the
Slutsky Decomposition
Ethan Kaplan
September 30, 2013
Outline
1. Convexity and Declining MRS
2. Duality and Hicksian Demand
3. Slutsky Decomposition
4. Net and Gross Sub
Economics 326: Prot
Maximization and Production
Ethan Kaplan
October 21, 2013
Outline
1. Prot Maximization
2. Production
1
Prot Maximiztion
What is prot maximization?
Firms decide how many inputs to p
Economics 326: Duality and
Supply
Ethan Kaplan
October 30, 2013
Outline
1. Cost Minimization
2. Cost Minimization: Example
3. Marginal, Average and Average Variable Cost Curves
4. Supply
1
Cost Minimi