Exercise on Changes in Dynamic General Equilibrium
The pencasts below concern the problems in this in-class exercise concerning the general equilibrium model with investment. The pencasts extend the model to include the market for money, and therefore also make predictions concerning the aggregate price level. We did problems #2 and #3 in class on Tuesday, November 29, so I provide pencasts for problems #1 and #4.
Problem #1: Apple introduces a new product called the iPeed, available for sale immediately. The iPeed will revolutionize how people work and communicate, making it easier and more eective to work on the go and communicate with your co-workers.
Problem #4: The government currently spends money on building infrastructure, and providing loans and grants to businesses to expand their facilities. The government announces it will discontinue these programs.
