ADVANCED MACROECONOMICS
Fall 2016

 Errata to the exercise problems
(continually updated)

28/11-2016
Midterm paper problem set, p.3, line 2 from below:    "and there is Harrod-neutral ..."    should read    "and grows at a constant rate, the same as that of capital; there are CRS and Harrod-neutral ...".
Comment: This - or equivalent information - is needed for answering Question 2b.

5/12-2016
X.9: At end of b) add: Qualify your evaluation by providing a precise formula for how much private consumption per period is reduced from period t_0 and onwards. 

X.10: At end of d) add: Assuming perfect foresigt, mu = mu_bar, and pi_0 > pi_hat, solve for the time path of the inflation rate. Hint: See Solutions to linear differential equations in the Appendix to the Collection of Exercises.

13/12-2016
X.7a): Replace the hint by a new hint saying: Consider maximization of E_t(U_t), where U_t as seen from period t is the analogue of U_0 as seen from period 0.