Practice Problems

Week 1: Measuring the Macroeconomy

Reading

Williamson, Chapter 2

Exercises

Week 2: Optimal Behavior of Consumers and Producers

Reading

  • Optimal consumption and leisure decisions of a representative household: Williamson, Chapter 4, pp. 98-117
  • Optimal labor demand and production decisions of a representative firm: Williamson, Chapter 4, pp. 122-135

Exercises

Week 3: Socially Optimal Model

Reading

  • Socially optimal allocation of consumption and leisure: Williamson, Chapter 5, pp. 142-150
  • Pareto optimality of competitive equilibrium: Williamson, Chapter 5, pp. 150-155
  • Optimal responses of the economy to government expenditure and technology shocks, Chapter 5, pp. 155-164

Exercises

Week 4: Solow Growth Model

Reading

  • Solow growth model: Williamson, Chapter 7, pp. 249-255
  • Long-run effects from changes to savings, technology, depreciation, labor force growth, Chapter 7, pp. 255-264

Exercises

  • Canvas Multiple Choice Quiz
    due Wednesday 11:59 PM
  • Solow Growth Model
    due Friday 11:59 PM

Week 6: Growth Models and Income Disparity

Reading

  • Convergence & divergence in economic development: Williamson, Chapter 8, pp. 281-290
  • Endogenous growth with human capital accumulation: Chapter 8, pp. 290-300

Exercises

Week 7: Consumption and Saving

Reading

  • CConsumption and savings decisions: Williamson, Chapter 9, pp. 306-321
  • Effects on decisions from changes in income: Chapter 9, pp. 321-324
  • Effects on decisions from changes in interest rates for savers and borrowers: Chapter 9, pp. 327-332
  • Ricardian Equivalence: Chapter 9, pp. 337-343

Exercises

Week 8: Dynamic Model of Consumer and Producer Decisions

Reading

  • Two-period dynamic model - Consumer decisions for consumption, saving, leisure, and labor supply: Williamson, Chapter 11, pp. 379-388
  • Two-period dynamic model - Producer decisions for labor demand, investment demand, and production: Chapter 11, pp. 389-397

Exercises

Week 10: Dynamic General Equilibrium Model

Reading

  • Competitive general equilibrium in the two-period dynamic model: Williamson, Chapter 11, pp. 401-414
  • Dynamics macroeconomic effects from changes in government expenditures: Chapter 11, pp. 414-417
  • Dynamics macroeconomic effects from changes in capital stock: Williamson, Chapter 11, pp. 417-421
  • Dynamics macroeconomic effects from changes in total factor productivity: Chapter 11, pp. 421-425

Exercises

Week 11: Dynamic Model with Money

Reading

  • Dynamic model of money supply and demand: Williamson, Chapter 12, pp. 442-457
  • Complete dynamic macroeconomic model with money: Chapter 12, pp. 457-459
  • Money neutrality: Williamson, Chapter 12, pp. 460-464
  • Shifts in Money Demand: Chapter 12, pp. 464-467

Exercises

Week 13: New Keynesian Model

Reading

  • New Keynesian model framework: Williamson, Chapter 14, pp. 509-513
  • Non-neutrality of money: Chapter 14, pp. 513-515
  • Government policy in the New Keynesian model: Williamson, Chapter 14, pp. 515-518

Exercises

Instructor

James Murray, Ph.D.

  2106 Wittich Hall
  608-785-6828
    608-406-4068
  jmurray@uwlax.edu

Student Hours Appointments

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  • 1:30 PM - 2:30 PM Mon/Wed/Fri
  • 2:30 PM - 4:30 PM Tue/Thurs
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