ECON482 Final: ECON 482 UofA E482Final Exam 09F
Document Summary
You have 120 minutes to do this exam. The number in brackets next to each question indicates the maximum number of marks that can be earned on that question. There are 120 marks in total (one mark per minute). No notes or other material (including all types of electronic devices) may be consulted during the exam. 2 y( t u)y t y t vpmy t t t v t v. 0 mmm t t where pt = price level, yt = output, Mt = nominal money supply, ut, t and mt are exogenous independent mean zero random variables and et-1 indicates the rational expectation taken knowing the values of all t-1 period variables. Find the equilibrium values of pt, et-1pt and yt as functions of exogenous variables and parameters only. The shock ut does not have a one-to-one impact on equilibrium pt. Provide a brief explanation with reference to the equations of the model. (15) (5)
