Problem Set Exercises: Macroeconomics in the Global
Economy
Updated: August 29, 2007
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 one week after the topic has been completed in class. 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 6th edition;
there is no Problem Set #1)
2.
Production, Distribution, and Spending: Chapter 3,
Problems #1, 5, 8. Answers are available as
a PDF file.
3.
Long-Run Growth and Productivity: Chapter 7, #2, #4,
#5 Chapter 8, #2, #5. Answers are available as
a PDF file.
4.
Natural Rate of Unemployment: Chapter 6, #4, #6, #8. Answers are available as
a PDF file.
5.
Money, Bonds, Interest Rates and Inflation in the Long
Run: Chapter 4, #3, #4, #8. Answers are available as
a PDF file.
6.
The Balance of Payments, Capital and Trade Flows with
Flexible Exchange Rates: Chapter 5, #1, #3, #5, #7. Answers are available as
a PDF file.
Business Cycles
7.
Business Cycles in an Aggregate Model: Money and Oil
Shocks: Chapter 9, #1, #3. Answers are available as
a PDF file.
8.
The Multiplier Model and Fiscal Policy: Chapter 10, #1,
#4. Answers are available as
a PDF file.
9.
The IS-LM Model in a closed economy: Chapter 11, #2,
#4, #5, #7. Answers are available as
a PDF file.
10. An international
model without capital mobility (no problem set).
11. The
Mundell-Fleming model with fixed rates: Chapter 12, #8. Answers are available as
a PDF file.
2.
The Mundell-Fleming model with flexible rates: Chapter
12, #4, #6, #7. Answers are available as
a PDF file.
3.
International Macroeconomic Arrangements (no problem
set).
4.
Aggregate Supply and the Phillips Curve: Chapter 13,
#7, #8. Answers are available as
a PDF file.
5.
Economic Policy: Chapter 14, #2. Answers are available as
a PDF file.