$2\mathrm{.}1$ Distinguish between partial equilibrium analysis and general equilibrium analysis. Briefly describe a model $of$ each kind.

$2\mathrm{.}2$ Keynesian models $in$ macroeconomics are identified $by$ the assumption $of$ a fixed price for output. Are such models partial $or$ general equilibrium?

$2\mathrm{.}4$ Let a consumer have preferences described $by$ the utility function:

$U=log(x1)+log(x2),$ and $an$ endowment $of2$ units $of$ good $1$ and $2$ units $of$ good $2.$

$a.$ Construct and sketch the consumer$s$ budget constraint. Show what happens when the price $of$ good $1$ increases.

$b.By$ maximizing utility, determine the consumer$s$ demands.

$c.$ What effect does increasing the endowment $of$ good $1$ have $on$ the demand for good $2?$ Explain your findings.

$2\mathrm{.}1$ Distinguish between partial equilibrium analysis and general equilibrium analysis.

Briefly describe a model $of$ each kind.

$2\mathrm{.}2$ Keynesian models $in$ macroeconomics are identified $by$ the assumption $of$ a fixed price

for output. Are such models partial $or$ general equilibrium?

$2\mathrm{.}4$ Let a consumer have preferences described $by$ the utility function:

$U=log(x1)+log(x2),$ and $an$ endowment $of2$ units $of$ good $1$ and $2$ units $of$ good $2.$

$a.$ Construct and sketch the consumer's budget constraint. Show what happens when the

price $of$ good $1$ increases.

$b.By$ maximizing utility, determine the consumer's demands.

$c.$ What effect does increasing the endowment $of$ good $1$ have $on$ the demand for good $2?$

Explain your findings.

$2\mathrm{.}6$ Let two consumers have preferences described $by$ the utility function

$U^h=log(x_1^h)+log(x_2^h),h=1,2,$