Exercise and Solutions Manual to Accompany Foundations of Modern Macroeconomics, Second Edition

Contents......Page 6
Preface......Page 10
2 The Cobb-Douglas production function......Page 14
3 The AS-AD model......Page 15
5 Tax incidence......Page 16
6 The Keynesian cross model......Page 17
8 The liquidity trap......Page 18
9 The IS-LM-AS model with inflation......Page 19
2 The Keynesian cross model (continued)......Page 38
4 Stability of the IS-LM model......Page 39
6 Ricardian equivalence in the Blinder-Solow model......Page 40
7 The Blinder-Solow model with capital accumulation......Page 41
9 More on adaptive expectations......Page 42
10 Optimization and computation......Page 43
11 The multiplier-accelerator model......Page 44
2 Stabilization of demand shocks......Page 78
3 Overlapping wage contracts and the REH......Page 79
4 A variation on the Muth model......Page 80
6 The Cagan model......Page 81
8 The labour market......Page 82
9 Liquidity trap......Page 83
10 PIP meets the Pigou effect......Page 84
12 Contemporaneous information......Page 85
14 Automatic stabilizer......Page 86
1 Short questions......Page 122
2 The IS-LM model with sticky prices......Page 123
4 The term structure of interest rates......Page 124
5 Fiscal policy with fixed nominal wages and perfect foresight......Page 125
2 Tax smoothing......Page 156
3 The two-period model with tax smoothing......Page 157
5 Ricardian equivalence in the two-period model......Page 158
2 Two-sector model with a skill-biased productivity shock......Page 170
3 Progressive taxation......Page 171
5 Efficiency wages......Page 172
2 Small talk......Page 186
5 The two-sector labour market model......Page 187
2 Search unemployment......Page 194
3 A CES matching function......Page 195
5 Dynamics of unemployment and vacancies......Page 196
2 Capital taxation and income inequality......Page 212
3 Choice of policy instrument......Page 213
4 Rules versus discretion......Page 214
5 Political business cycles......Page 215
2 The Mundell-Fleming model......Page 230
3 The Dornbusch model......Page 231
4 The Buiter-Miller model......Page 232
5 Dynamics of foreign reserves......Page 233
6 Price flexibility in the Mundell-Fleming model......Page 234
2 Optimal money growth......Page 266
3 Monetary superneutrality......Page 268
4 Cash-in-advance constraint in continuous time......Page 269
5 Cash-in-advance with labour supply......Page 270
2 Cost function for a Dixit-Stiglitz technology......Page 292
4 Consumers in the New Keynesian model......Page 293
5 Producers in the New Keynesian model......Page 294
6 Monetary policy in the New Keynesian model......Page 296
1 Short questions......Page 318
3 The production function......Page 319
5 The Solow-Swan model......Page 320
7 The Solow-Swan model with population growth......Page 321
9 Optimal investment......Page 322
11 The savings function......Page 323
13 Technological change......Page 324
14 Constant marginal utility......Page 325
15 Intertemporal substitution......Page 326
2 Endogenous growth......Page 362
3 Minimum consumption and endogenous growth......Page 363
5 External effect and endogenous growth......Page 364
6 Asymptotic capital fundamentalist model......Page 365
2 Small open economy model......Page 382
3 The non-market sector......Page 383
4 A general RBC model......Page 385
6 No wealth effect in labour supply......Page 386
2 The Buiter model......Page 408
3 Endogenous growth......Page 409
5 Technological change......Page 410
6 Mandatory retirement......Page 412
7 Public infrastructure......Page 413
2 Capital fundamentalism in an OLG model......Page 444
3 Welfare effects of debt......Page 445
4 Lifetime uncertainty in a two-period model......Page 446
6 Consumption taxation and redistribution......Page 447
Bibliography......Page 470