A spreadsheet for playing with the medium-run flexible-price model set out at http://delong.typepad.com/delongslides/2008/02/the-flexible-pr.html is now up on the internet at: http://www.j-bradford-delong.net/2008_xls/20080227_flexmodel.xls

Parameters go in g44:g57; outcomes are in g60:g70 and in the graph to the left of parameters and outcomes...

Your assignment is to:

Test the spreadsheet. Download the .xls file, open it in Excel (or equivalent), change one parameter value, and report if what the model says happened makes sense--is the spreadsheet correct?

Analyze the results: explain why--that is, provide some intuition--the spreadsheet reported that your change in the mode parameters had the effects that it did.

Email your results to me at brad.delong@gmail.com.

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