## Practice Problems

## Week 1: Measuring the Macroeconomy

### Instructional Videos

### Reading

### Exercises

- Canvas Multiple Choice Quiz

due Wednesday 11:59 PM - Measuring the Macroeconomy

due Friday 11:59 PM

## Week 2: Optimal Behavior of Consumers and Producers

### Instructional Videos

- Utility Definitions and Assumptions
- Indifference Curves
- Introduction to Consumption/Leisure Model
- Maximizing Utility in Cons/Leisure Model
- Impact of a Change in Non-Wage Income
- Impact of a Change in Wage
- Income and Substitution Effects
- Introduction to Production Functions
- Shape and Shifts of Production Functions
- Increase in Capital Stock
- Profit Maximizing Labor Demand
- General Equilibrium

### 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

- Canvas Multiple Choice Quiz

due Wednesday 11:59 PM - Consumer and Producer Behavior

due Friday 11:59 PM

## Week 3: Socially Optimal Model

### Instructional Videos

### 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

- Canvas Multiple Choice Quiz

due Wednesday 11:59 PM - Socially Optimal Model

due Friday 11:59 PM

## Week 4: Solow Growth Model

### Instructional Videos

### 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

### Instructional Videos

### Reading

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

### Exercises

- Canvas Multiple Choice Quiz

due Wednesday 11:59 PM - Growth and Income Disparity

due Friday 11:59 PM

## Week 7: Consumption and Saving

### Instructional Videos

- Intertemporal Budget Constraint
- Graphical Intertemporal Budget Constraint
- Optimal Consumer Behavior
- Increase in Future Income
- Increase in Interest Rates on Borrowers
- Increase in Interest Rates on Savers
- Ricardian Equivalence
- Temporary Increase in Income
- Permanent Increase in Income
- Temporary Increase in Government Expenditures
- Permanent Increase in Government Expenditures

### 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

- Canvas Multiple Choice Quiz

due Wednesday 11:59 PM - Consumption and Saving Model

due Friday 11:59 PM

## Week 8: Dynamic Model of Consumer and Producer Decisions

### Instructional Videos

### 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

- Canvas Multiple Choice Quiz

due Wednesday 11:59 PM - Dynamic Framework for Consumer and Producer Decisions

due Friday 11:59 PM

## Week 10: Dynamic General Equilibrium Model

### Instructional Videos

### 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

- Canvas Multiple Choice Quiz

due Wednesday 11:59 PM - Dynamic General Equilibrium Model

due Friday 11:59 PM

## Week 11: Dynamic Model with Money

### Instructional Videos

### 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

- Canvas Multiple Choice Quiz

due Wednesday 11:59 PM - Dynamic Model with Money

due Friday 11:59 PM

## Week 13: New Keynesian Model

### Instructional Videos

### 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

- Canvas Multiple Choice Quiz

due Wednesday 11:59 PM - New Keynesian Model

due Friday 11:59 PM

## Instructor

### James Murray, Ph.D.

2106 Wittich Hall608-785-6828

608-406-4068

jmurray@uwlax.edu

### Student Hours Appointments

Student hours appointments are available with as little as a 30-minute notice, and are generally available at the following times:

- 8:30 AM - 10:30 AM Mon/Wed/Fri
- 1:30 PM - 2:30 PM Mon/Wed/Fri
- 2:30 PM - 4:30 PM Tue/Thurs