Math Skills Prerequisite to ECON 201

INTRODUCTION TO ECONOMICS

Name and Id: _____________________________________

Fall 2010Professor Blerta Abazi Math Skills Prerequisites HomeworkThe three 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 know what the 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:Y = [-b/(1-b)] T

b = 2/3

Find:the value of T that yields a Y of 200

(The Greek letter " (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 0.666666666666.

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