Due:Wednesday, October 29, by midnight

Data: Not applicable.

Introduction: This problem set is designed to provide practice simulating macroeconomic models with spreadsheets.

Instructions: Using Excel, create a simulation of the model described in Question #1 on page 300 of the textbook.  Answer all of parts of this question on your spreadsheet.  Parts (b), (c), (d) and (e) should be graphed. 

Also, briefly summarize the article by Samuelson ("Interactions between the multiplier analysis and the principle of acceleration," Review of Economics and Statistics, volume 21, May 1939, pp. 75-78) in 100 words or less. Describe the main point or points of the article in your summary, and also discuss why this article is relevant to forecasting. Include the summary on a seperate worksheet in the spreadsheet file. The article by Samuelson can be found on-line at JSTOR or in the AOK Library.

After completing this homework, save your spreadsheet (name it PS5xxxx.xls where xxxxx is your last name) and attach it to an e-mail message.