中宏中級宏觀經(jīng)濟學筆記小故事全集錄音作業(yè)17答案

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IntermediateMacroeconomics,ClassNo.2Fall2017

4

Due:12/16/2016

Multiplechoicequestions(2pointseach)

Accordingtoclassical theory,national edependson ,whileKeynesproposedthat determinedthelevelofnational e.

aggregatedemand;aggregatesupply

aggregatesupply;aggregatedemand

monetary ;fiscal

fiscal ;monetary

TheIS-LMmodeltakes asexogenous.

thepricelevelandnational e

thepricelevel

national e

theinterestrate

TheKeynesiancrossshows:

determinationofequilibrium eandtheinterestrateintheshortrun.

determinationofequilibrium eandtheinterestrateinthelongrun.

equalityof nnedexpenditureand eintheshortrun.

equalityof nnedexpenditureand einthelongrun.

IntheKeynesian-crossmodel,iftaxesarereducedby100,thennnedexpenditures foranygivenlevelof e.

increaseby100

increasebymorethan100

decreaseby100

increase,butbylessthan100

TheKeynesian-crossysisassumesnnedinvestment:

isfixedandsodoestheISysis.

dependsontheinterestrateandsodoestheISysis.

isfixed,whereastheISysisassumesitdependsontheinterestrate.

dependsontheinterestrateandsodoestheIS ysis.

Anex nationfortheslopeoftheIScurveisthatastheinterestrateincreases,thetyofinvestment ,andthisshiftstheexpenditurefunction ,

therebydecreasing e.

increases;downward

increases;upward

decreases;upward

decreases;downward

TheIScurvegenerallydetermines:

e.

theinterestrate.

both eandtheinterestrate.

neither enortheinterestrate.

AnexnationfortheslopeoftheLMcurveisthatas:

theinterestrateincreases, e eshigher.

theinterestrateincreases, e eslower.

erises,moneydemandrises,andahigherinterestrateisrequired.

erises,moneydemandrises,andalowerinterestrateisrequired.

Adecreaseinthepricelevel,holdingnominalmoneysupplyconstant,willshiftthe

LMcurve:

upwardandtotheright.

downwardandtotheright.

downwardandtotheleft.

upwardandtotheleft.

Foranygiveninterestrateandpricelevel,anincreaseinthemoneysupply:

lowers e.

raises e.

hasnoeffecton e.

lowersvelocity.

IftheLMcurveisverticaland ernmentspendingrisesbyG,intheIS-LM

ysis,thenequilibrium erisesby:

G/(1-MPC).

morethanzerobutlessthanG/(1-MPC).

G.

zero.

Theincreasein einresponsetoafiscalexpansionintheIS-LMis:

alwayslessthanintheKeynesian-crossmodel.

lessthanintheKeynesian-crossmodelunlesstheLMcurveisvertical.

lessthanintheKeynesian-crossmodelunlesstheLMcurveishorizontal.

lessthanintheKeynesian-crossmodelunlesstheIScurveisvertical.

IntheIS-LMmodelwhenMrisesbutPremainsconstant,inshort-runequilibrium,intheusualcase,theinterestrate andoutput .

rises;falls

rises;rises

falls;rises

falls;falls

Iftaxesareraised,buttheFedprevents efromfallingbyraisingthemoneysupply,then:

bothconsumptionandinvestmentremainunchanged.

consumptionrisesbutinvestmentfalls.

investmentrisesbutconsumptionfalls.

bothconsumptionandinvestmentfall.

Ifshort-runequilibriumintheMundell-FlemingmodelisrepresentedbyagraphwithYalongthehorizontalaxisandtheexchangeratealongtheverticalaxis,thentheLM*curve:

slopesupwardandtotherightbecauseatahigher eahigherinterestrateisneededtoincreasevelocity.

isverticalbecausemonetaryvelocityisindependentoftheinterestrate.

isverticalbecausetheexchangeratedoesnotenterintotheLM*equation.

slopesupwardandtotherightbecauseahigherexchangerateleadstoahighere.

IntheMundell-Flemingmodel,theexogenousvariablesarethe:

worldinterestrate,thepricelevel,andtheexchangerate.

levelof ernmentspending,taxes,and e.

exchangerateandlevelof e.

pricelevel,worldinterestrate,monetary,andfiscal.

Inasmallopeneconomywithafloatingexchangerate,arisein ernmentspendinginthenewshort-runequilibrium:

chokesoffinvestment,butnotbyasmuchasthenew ernmentspending.

chokesoffanamountofinvestmentjustequaltothenew ernmentspending.

attractsforeigncapital,thusraisingtheexchangerateandreducingnetexports,butnotbyasmuchasthenew ernmentspending.

attractsforeigncapital,thusraisingtheexchangerateandreducingnetexportsbyanamountjustequaltothenew ernmentspending.

Underafixed-exchange-ratesystem,thecentralbankofasmallopeneconomymust:

haveareserveofitsowncurrency,whichitmusthaveaccumulatedinpasttransactions.

haveareserveofforeigncurrency,whichitcanprint.

allowthemoneysupplytoadjusttowhateverlevelwillensurethattheequilibriumexchangerateequalstheannouncedexchangerate.

followarulespecifyingaconstantgrowthrateforthemoneysupply.

Inasmallopeneconomywithafixedexchangerate,ifthecountrydevaluesitscurrency,theninthenewshort-runequilibriumtheexchangerate ,andtheLM*curveshiftstothe .

decreases;left

increases;left

decreases;right

increases;right

Afallinconsumerconfidenceaboutthefuture,whichinducesconsumerstospendlessandsavemore,will,accordingtotheMundell-Flemingmodelwithfloatingexchangerates,leadto:

afallinconsumptionand e.

nochangeinconsumptionor e.

nochangein ebutariseinnetexports.

nochangein eornetexports.

IntheMundell-Flemingmodelwithafloatingexchangerate,ariseintheworldinterestratewilllead e:

andnetexportsbothtofall.

toriseandnetexportstofall.

tofallandnetexportstorise.

andnetexportsbothtorise.

Theimperfect-informationmodelbasesthedifferenceintheshort-runandlong-runaggregatesupplycurveon:

stickywages.

stickyprices.

temporarymisperceptionsaboutprices.

procyclicalrealwages.

Themodelofaggregatedemandandaggregatesupplyisconsistentwithshort-runmonetary andlong-runmonetary .

neutrality;neutrality

nonneutrality;nonneutrality

neutrality;nonneutrality

nonneutrality;neutrality

Inflationinertiaisrepresentedintheaggregatesupplyandaggregatedemandmodelbycontinuingupwardshiftsinthe:

aggregatedemandcurve.

short-runaggregatesupplycurve.

long-runaggregatesupplycurve.

aggregatedemandandshort-runaggregatesupplycurves.

Cost-pushinflationistheresultof:

highaggregatedemand.

lowaggregatedemand.

favorablesupplyshocks.

adversesupplyshocks.

Assumethatthesacrificeratioforaneconomyis4. Ifthecentralbankwishestoreduceinflationfrom10percentto5percent,thiswillcosttheeconomy percentofoneyear'sGDP.

4

5

20

40

Essayquestions

(10points)Chapter11,question#1.

(10points)Chapter12,question#9.

(16points)Chapter13,