Derive the equations for the IS curve and the  curve. Hints: IS curve is a set of pairs, where households and firms behave optimally concerning consumption, investment demand, and income equals expenditure. curve is a set of pairs where households and firms behave optimally, the labor market clears, and the production function holds.

Combine the two budget constraints into a single lifetime budget constraint.

What is the key cause of business cycles in the original Real Business Cycle Theory?

Endowment Equilibrium and Fiscal Policy Suppose that we have an economy with many identical households. There is a government that exogenously consumes some output ( and ) and pays for it with lump-sum taxes ( and ) or debt (). Lifetime utility for a household is:

What are the two within-period budget constraints for the government? Combine the two within-period budget constraints for the government into one intertemporal budget constraint.

Production Equilibrium of the Neoclassical Model The following conditions must hold in the Production Equilibrium of the Neoclassical Model:

Baby Sally’s parents use the Ferber method to put her to bed/sleep. “Ferber method” refers to:

According to Piaget, school age is the _______ stage of cognitive development. 

Researcher James-Roberts studied infant crying and found that, compared to infant-demand method, traditional method (i.e., not responding to an infant’s every cry) leads to _______ during the first three months, but _______ after that.

Which one is NOT a critique of Baumrind (1966) and Maccoby and Martin (1983)’s categorization of parenting styles?