Lecturer: Tasneem Raihan University of California, Riverside

Intermediate Macroeconomics

Written Assignment – I

Due on February 26, 2018 in the lecture. No late submissions will be accepted.

Please answer the following chapter end questions.

Chapter 6:

Problems and Applications: 1, 2, 3, 9, 11.

Chapter 13:

Questions for review: 1, 2, 3.

Problems and Applications: 1, 2, 3.

Additional questions:

1. Read the case study “The Debate Over the Euro” and answer the following questions:

a. What is the most important cost that the European Monetary Union entails?

b. What is the advantage of the European Monetary Union?

c. How could Greece avoid its severe financial difficulties had it not been a member

of the European Monetary Union? Explain clearly.

2. Suppose that a small open economy suddenly experiences a violent political upheaval. Explain what will happen to its interest rate, equilibrium nominal exchange rate, and

output. Use a graph to illustrate your answer.

Chapter 8:

Questions for review: 2, 3, 4.

Problems and applications: 1, 3 (a, b & c only), 5.