Test 2

Hey folks:

Don't get too excited. I have not been able to access your tests this weekend as hoped. So they will NOT be scored by Monday. (But I will have to have them scored and grades computed by Monday midnight.) You will get your results on Wednesday.

I hope it was not too much of an inconvenience being absent on Friday. (One hypothesis is that having the professor OUT of the room during a test puts the test taker at more ease, therefore marginally improving performance. What do you think? Add comment.)

JJ

Homework #4 *updated*

The 4th homework assignment, currently set to be due on Friday, will be due on Monday. Yeah, I know, its homecoming. But sincerely, you should be able to answer all of these by doing the assigned readings in Chapter 4 of the Mankiw text.

Know these relationships:

Quantity equation: M x V = P x Y

M = money supply
V = velocity
P = price level (not turned into "index form" by being multiplied by 100)
Y = real output (real GDP)

The above can be stated in "percent change form" as:

(%change M) + (%change V) = (%change P) + (%change Y) which means:

monetary growth rate + change in velocity = inflation rate + real GDP growth rate

Fisher equation is

nominal interest rate = real interest rate + inflation rate. You can use algebra to solve for unknowns.

For problem 3, look at the equation of exchange and see what will happen. *update: invoke the "quantity theory" in that Velocity is argued to be constant. That will help you draw the conclusion.*

For problem 4, poke around here.

Test 1 grade distribution

Here is some information regarding the first test.

Out of a possible 30 points:

average = 22.07 (73.6%)
median = 23 (76.67%)
modes = 22, 23 (each has 3 observations)
standard deviation = 3.49 (11.63%)

Given that the average/median are below 80%, you can use the following "curve" to interpret your score. (Bear in mind, I only record raw scores and these scores are appropriately weighted given the number of points on the test and the point value of the test as declared on the course syllabus. I do not record letter grades for tests.)

A range: 25.5 and higher
B range: 22.5 to 25
C range: 18.5 to 22
D range: 15-18
F range: below 15 points (15 points is 50%, a very reasonable cut off for a passing score.)

The number of A and B range scores outnumber the C, D, and F range scores. So the distribution is a bit top heavy.

For those with good scores, keep up the good work. If you did not get the score you desired, I would hope you spend a bit more time and concentration with the material for the next test (Friday, October 22).