The four problems below are representative of the mathematics required for dealing with the basic relationships in macroeconomics. You should be able to solve these sample problems even though you do not yet know what the various symbols stand for.
Problem 1:
Given: | C = 750 + 0.90Y | |
I = 350 | ||
G = 400 | ||
Find: | the values of Y and C that satisfy the equation: Y = C + I + G |
Problem 2:
Given: | DY = [-b/(1-b)] DT | |
b = 2/3 | ||
Find: | the value of DT that yields a DY of 200 | |
Note:: | The Greek letter "D"
(Delta) means "change." The equation indicates that the change in Y is
-b/(1-b) times the change in T.
You need not (and should not) convert the fraction 2/3 to 0.66666666666666666666666666666666666666666666. |
Problem 3:
Given: | M = C + D | |
D = R/r | ||
C = 600 | ||
R = 400 | ||
Find: | the value of r that yields an M of 2,600 |
Problem 4:
Given: | C = a + bY, where a and b are known parameters | |
Y = C + I | ||
Find: | the equation that describes how C depends upon I | |
Hint: | You're looking for an
equation
in the form C = h + jI,
where h and j are expressions in a and/or b. |
|
Application: | Suppose that a = 400 and b = 0.75. | |
Find: | the corresponding values of h and j | |
Write C = h + jI, using these numerical values. | ||
When I = 600, how much is C? |
Problems 5a and 5b:
For the determination of
course grades,
each student will have the benefit of two alternative weighting
schemes.
The two one-hour exams plus the final exam will count 1/3, 1/3, and 1/3
or 1/4, 1/4, and 1/2, depending upon which weighting gives the higher
score.
The break points for letter grades are set at 90, 80, 70, and 60. |
||
Problem 5a: | Suppose your scores for the two
one-hour exams
are 92 and 97.
What is the lowest score you could make on the final exam and still earn an A for the course? (Ignore prospects for rounding the course average.) |
|
Problem 5b: | Suppose your scores for
the two
one-hour exams are 73 and 69.
What is the lowest score you could make on the final exam and still earn a B for the course? (Again, ignore prospects for rounding the course average.) |
Separate these terms, names, and phrases into the appropriate "LEFT" and "RIGHT" categories--beginning with LEFT on the left and RIGHT on the right. | ||
____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ |
RIGHT LIBERAL RON PAUL DEMOCRAT REPUBLICAN RED STATES DICK CHENEY BLUE STATES LAISSEZ FAIRE JOHN KENNEDY CONSERVATIVE BARACK OBAMA RONALD REAGAN BIG GOVERNMENT HILLARY CLINTON CENTRAL CONTROL SMALL GOVERNMENT MINIMUM-WAGE LEGISLATION PRIVATIZATION OF SOCIAL SECURITY TAX-FUNDED COMPREHENSIVE MEDICAL CARE MARKET SOLUTIONS TO ECONOMIC PROBLEMS GOVERNMENT SOLUTIONS TO ECONOMIC PROBLEMS
|
____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ |
Arrange the dozen events below in chronological order, giving approximate dates. |
EVENT |
DATES |
|
____
____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____ |
_________
_________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ |