Problem Set Exercises: Macroeconomics in the Global Economy

 

Updated: Mar 24, 2013

 

As stated in the course syllabus, problem sets are not required.  Problem sets will not be graded, nor are they worth formal credit.  They are taken from the text and thus are not indicative of what the final exam will look like (previous exams are much better guides to future exams, and will be distributed well in advance of the final exam). 

 

Nevertheless, problem sets are recommended since they are good exercise.  The names of students who hand in problem sets will be recorded, and students on the margin of receiving a higher grade will benefit from completing problem sets.  To be recorded, problem sets should be handed in no later than two weeks after the topic has been completed in class to either the instructor or the GSI.  Hard copy please!  (And please don’t hand in a print-out of the solutions.)

 

Since problem sets are primarily intended for your own benefit, answers are also available.

 

Problem Sets, organized by topic

(Chapters and problems taken from Mankiw’s Macroeconomics 8th edition; there is no Problem Set #1)

 

Long-Run Relationships

2.     Production, Distribution, and Spending: Chapter 3, Problems #1, 6, 9.     Answers are available as a PDF file.

3.     Long-Run Growth and Productivity: Chapter 8, #2, #4  Chapter 9, #2, #5.     Answers are available as a PDF file.

4.     Natural Rate of Unemployment: Chapter 7, #4, #6, #8.     Answers are available as a PDF file.

5.     Money, Bonds, Interest Rates and Inflation in the Long Run: Chapter 5, #2.     Answers are available as a PDF file.

6.     The Balance of Payments, Capital and Trade Flows with Flexible Exchange Rates: Chapter 6, #3, #5, #7.     Answers are available as a PDF file.

 

Business Cycles

7.     Business Cycles in an Aggregate Model: Money and Oil Shocks: Chapter 10, #1, #3.     Answers are available as a PDF file.

8.     The Multiplier Model and Fiscal Policy: Chapter 11, #1, #4.     Answers are available as a PDF file.

9.     The IS-LM Model in a closed economy: Chapter 12, #2, #4, #5, #7.     Answers are available as a PDF file.

10.  The Mundell-Fleming model with fixed rates: Chapter 13, #8.     Answers are available as a PDF file.

11.   The Mundell-Fleming model with flexible rates: Chapter 13, #4, #6, #7.     Answers are available as a PDF file.

12.   International Macroeconomic Arrangements (no problem set).

13.   Aggregate Supply and the Phillips Curve: Chapter 14, #7, #8.     Answers are available as a PDF file.

14.   Economic Policy: Chapter 18, #2.     Answers are available as a PDF file.