ECON482 Midterm: ECON 482 UofA E482A110
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This assignment will be marked out of 160. The maximum number of marks that can be earned on a question is given in brackets next to the question. Your answers should be concise and to the point. The endogenous variables are y, r, p, n and w. all other variables are exogenous. Find the vertical shift in the is curve following an increase in the lump sum tax (t) and sign this shift. Find the horizontal shift in the aggregate demand curve following an increase in the lump sum tax (t) and sign this shift. As is standard, assume real output is on the horizontal axis. Find the derivative which gives the impact of a change in the productivity parameter (a) on the equilibrium real interest rate (r) and sign this derivative. 0
