Econ-UG 12-001 (2) Intermediate Macroeconomics: Midterm Exam Makeup
Fall 2020
Instructions:
1. This is a closed-book exam. Calculators ARE NOT allowed.
2. You have 1 hour and 30 minutes to complete the exam. Scan or take a picture of your
answers and email it to Do Lee at dql204@nyu.edu
3. Answer ALL questions.
4. Show all of your work. We will give partial credit.
5. Point values are marked on each question. There are 100 points in total.
6. Good luck!
Question 1: Intertemporal Consumption Problem (30 points)
Suppose you divide your life into two periods: working age and retirement age. When you work,
you earn labor income Y; when retired, you earn no labor income, but must live off your savings