宏观经济学原理答案

宏观经济学原理（第六版）梁小民改编Unit 4 Application: International Trade

1.The supply curve shows the quantity of a good supplied by sellers, and the demand curve shows the quantity of a good demanded by buyers. When the domestic quantity supplied is greater than the domestic quantity demanded, a country sells the good to other countries, thus the country become an exporter of a good, conversely, the country become an importer of a good.

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3. Tariff is a tax on goods produced abroad and sold domestically.

The economic effects of tariff: The tariff raises the domestic price, domestic sellers are better off, and domestic buyers are worse off.In addition, the government raises revenue. First, when the tariff raises the domestic price above the world price, it encourages domestic producers to increase production. Second, when the tariff raises the price that domestic goods consumers have to pay, it encourages them to reduce consumption of goods.

4. There are various arguments for restricting trade: protecting jobs, defending national security, helping infant industries, preventing unfair competition, and responding to foreign trade restrictions. Although some of these arguments have some merit in some cases, economists believe that free trade is usually the better policy.

Unit 5 Measuring a Nations Income

1. The production of a luxury car contributes more to GDP than the production of an economy car. Because market prices measure the amount people are willing to pay for different goods, they reflect the value of those goods. The luxury car has a higher market value.

2. The contribution to GDP is 3$, the market value of the bread, which is the final good that is sold.

3.The four components of GDP are consumption, such as the purchaseof a music CD; investment, such as the purchase of a computer by a business; government purchases, such as an order for military aircraft; and net exports, such as the sale of American wheat to Russian.

4.Economists use real GDP rather than nominal GDP to gauge economic well- being because real GDP is not affected by changes in prices, so it reflects only changes in the amounts being produced. If nominal GDP rises, you do not know if that is because of increased production or higher prices.

Unit 6 Measuring the Cost of Living

1. A 10 percent increase in the price of chicken has a greater effect on the consumer price index than a 10 percent increase in the price of caviar because chicken is a bigger part of the average consumer’s market basket.

2.The three problems in the consumer price index as a measure of the cost of living are: (1) substitution bias, which arises because people substitute toward goods that

have become relatively less expensive; (2) the introduction of new goods, which are not reflected quickly in the CPI; (3)unmeasured quality change

3. If the price of a Navy submarine rises, there is no effect on the consumer price index, since Navy submarines are not consumer goods. But the GDP price index is affected, since Navy submarines are included in GDP as a part of government purchases.

4. Since the overall price level doubled, but the price of the candy bar rose sixfold, the real price (the price adjusted for inflation) of the candy bar tripled.

5. The nominal interest rate is the interest rate paid on a loan in dollar terms.

The real interest rate is the interest rate corrected for the effects of inflation.

The real interest rate is the nominal interest rate minus the rate of inflation.

Unit 7Production and Growth

1. The four determinants of productivity are:(1) physical capital, which is the stock of equipment and structures that are used to produce goods and services; (2) human capital, which consists of the knowledge and skills that workers acquire through education, training, and experience;(3)natural resources, which are inputs into the production of goods and services that are provided by nature; and (4)technological knowledge, which is society’s understanding of the best ways to produce goods and services.

2. Higher saving means fewer resources are devoted to consumption and more to producing capital goods. The rise in the capital stock leads to rising productivity

and more rapid growth in GDP for a while. In the long run, the higher saving rate leads to a higher standard of living. A policymaker might be deterred from trying to raise the rate of saving because doing so requires that people reduce their consumption today and it can take a long time to get a higher standard of living.

3. Removing a trade restriction, such as a tariff, would lead to more rapid economic growth because the removal of the trade restriction acts like an improvement in technology. Free trade allows all countries to consume more goods and services.

4.The higher the rate of population growth, the lower is the level of GDP per person, because there’s less capital per person, hence lower productivity.

5. The U.S government tries to encourage advances in technological knowledge by providing research grants through the National Science Foundation and the National Institute of Health, with tax breaks for firms engaging in research and development, and through the patent system.

Unit 8Saving, Investment, and the Financial System

1.It is important for people who own stocks and bonds to diversify their holdings because then they will have only small stake in each asset, which reduces risk. Mutual funds make such diversification easy by allowing a small investor to purchase parts of hundreds of different stocks and bonds.

2.National saving is the amount of a nation’s income that is not spent on consumption or government purchases. Private saving is the amount of income that households have left after paying their taxes and paying for their consumption.

Public saving is the amount of tax revenue that the government has left paying for its spending. The three variables are related because national saving equals private saving plus public saving.

3.Investment refers to the purchase of new capital, such as equipment or buildings. It is equal to national saving.

4.A change in tax code that might increase private saving is the introduction of a consumption tax to replace the income tax. Since a consumption tax would not tax the returns saving, it would increase the supply of loanable funds, thus lowering interest rates and increasing investment.

5. A government budget deficit arises when government spends more than it receives in tax revenue. Since a government budget deficit reduces national saving, it raises interest rates, reduces private investment, and thus reduces economic growth.

Unit 9The Basic Tools of Finance

1. Purchasing insurance allows an individual to reduce the level of risk he faces. Two problems that impede the insurance industry from working correctly are adverse selection and moral hazard. Adverse selection occurs because a high-risk person is more likely to apply for insurance than a low-risk person is. Moral hazard occurs because people have less incentive to be careful about their risky behavior after they purchase insurance.

2.A stock analyst will consider the future profitability of a firm when determining

the value of the stock.

3. The efficient markets hypothesis suggests thatstock prices reflect all avaiable information. This means that we cannot use current information to predict future changes in stock prices. One piece of evidence that supports this theory is the fact that many index funds out perform mutual funds that are actively managed by a professional portfolio manager.

Unit 10Unemployment

1.(1)Frictional unemplotment is inevtiable because the economy is always changing. Some firms are shringking while others are expanding. Some regions are experiencing faster growth than other regions. Transitions of workers between firms and between regions are accompanied by temporary unemployment.

(2)The government could help to reduce the amount of fritional unemployment by public policies that provide information about job vacancies in order to match workers and jobs more quickly, and through public training programs that help ease the transition of workers from declining to expanding industries and help disadvantaged groups escape poverty.

2.Minimum-wage laws are a better explanation for unemployment among teenagers than among college graduates. Teenagers have fewer job-related skills than college graduates do, so their wages are low enough to be affected by the minimum wage. College graduates’wages generally exceed the minimum wage.

3.Unions may affect the natural rate of unemployment via the effect on insiders

and outsiders. Since unions raise the wage above the equilibrium level, the quantity of labor demanded declines while the quantity supplied of labor rises, so there is unemployment. Insiders are those who keep their jobs. Outsiders, workers who become unemployed, have two choices: either get a job in a firm that is not unionized or remain unemployed and wait for a job to open up in the uion sector. As a result, the natural rate of unemployment is higher than it would be without unions.

4.Advocates of unions claim that unions are good for the economy because they are an antidote to the market power of the firms that hire workers and they are important for helping firms respond effeiciently to workers’ concerns.

5. Four reasons why a firm’s profits might increase when it raises wages are: (1) better paid workers are healthier and more productive; (2) worker turnover is reduced; (3)worker effort is increased; and (4) the firm can attract higher quality workers.

Unit 11 The Monetary System

1.Money is different from other assets in the economy because it is most liquid asset available. Other assets vary widely in their liquidity.

https://www.360docs.net/doc/9e13725629.html,modity money is money with intrinsic value, like gold, which can be used for purposes other than as a medium of exchange. Fiat money without intrinsic value, it has no value other than its use as a medium of exchange. Our economy today uses fiat money.

3.If the fed wants to increase the supply of money with open-market operation, it purchases U.S government bonds from the public on the open market. The purchase increases the number of dollars in the hand of the public, thus raising the money supply.

4.Reserve requirements are regulations on the minimum amount of reserves that banks must hold against deposits. An increase in reserve requirement raises the ratio, lowers the money multiplier, and decreases the money supply.

5.The discount rate is the interest rate loans that the Federal Reserve makes to banks. If the Fed raises the discount rate, fewer banks will borrow from the Fed, so banks’reserves will be lower, and thus the money supply will be lower.

6. The Fed cannot control the money supply perfectly because: (1) the Fed does not control the amount of money that households choose to hold as deposits in banks, and (2) the Fed does not control the amount that bankers choose to lend. The actions of households and banks affect the money supply in ways the Fed cannot perfectly control or predict.

Unit 12 Money Growth and Inflation

1.According to the quantity theory of money, an increase in the quantity of money causes a proportional increase in the price level.

2. Nominal variables are those measured in monetary units, while real variables are those measured in physical units. Examples of nominal variables include the prices of goods, wages, and the dollar value of GDP. Examples of real variables

include relative prices (the price of one good in terms of anthor), real wages, and real GDP. According to the pricinple of monetary neutrality, only nominal variables are affected by changes in the quantity of money.

3.Inflation is like a tax because everyone who holds money loses purchasing power. In a hyperinflation, the government increases the money supply rapidly, which leads to a high rate of inflation. Thus the government uses the inflation tax, instead of taxes on income, to finace its spending.

4.According to the Fisher effect, an increase in the inflation rate raises the nominal interest rate by the same amount that the inflation rate increases, with no effect on the real interest rate.

5.If inflation is less than expected, creditors benefit and debtors lose. Creditors receive dollar payments from debtors that have a higher real value than was expected.

Unit 13 Open-Economy Macroeconomics Basic Concepts 1.The net exporys of a country are the value of its exports minus the value of its imports.

Net capital outflow refers to the purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreigners.

Net exports are equal to net capital outflow by an accounting identity, since exports from one country to anthor are matched by payments of some asset from the second country to the first.

2.Saving equals domestic investment plus net capital outflow, since any dollar saved can be used to finace accumulation of domestic capital or it can be used to fiance the purchase of capital abroad.

3.If a dollar can buy 100 yen, the nominal exchange rate is 100 yen per dollar. The real exchange rate equals the nominal exchange rate times the domestic price divided by the foreign price, which equals 100 yen per dollar times $10,000 per Ameican car divided by 500,000 yen per Japanese car, which equals 2 Japanese cars per Ameican car.

4.The economic logic behindd the theory of purchasing-power parity is that a good must sell for the same price in all locations. Otherwise, people would profit by engaing in arbitrage.

5.If the Fed started printing large quantities of U.S. dollars, the U.S price level would increase, and a dollar would buy fewer Japanese yen.

Unit 14 A Macroeconomic Theory of the Open Economy 1.The supply of loanable funds comes from natinal saving, the demand for loanable funds comes from domestic investment and net capital outflow. The supply of doallars in the market for foreign exchange comes from net capital outflow, the demand for dollars in the market for foreign exchange comes from net ecperts. The line between the two martkets is net capital outflow.

https://www.360docs.net/doc/9e13725629.html,ernment budget deficits and trade deficits are sometimes called the twin deficits because a governmemt budget deficit often leads to trade deficit. The

dovernment budget deficit leads to reduced national saving, causing the interest rate increase, thus reducing net capital outflow, which in reduces net exports.

3.If a union of textile workers encourages people tp buy only Aerican-made clothes, imports would be reduced, so net exports would increase for any given real exchange rate. This would cause the demand curve in the market for foreign exchange to shift to the right, as shown in Figure 2. The result is rise in the real exchange rate, but no effct on the trade balance. The textile industry would import less, but other industries, such as the auto industry. Would import more because of the higher real exchange rate.

4.Capital flight is a large and sudden movement of funds out of a country. Capital flight cause the interest rate to increase and the exchange rate to depreciate.

Unit 15 Aggregate Demand and Aggregate Supply

1.Three aggregate-demand curve is downward sloping because: (1) a decrease in the price level makes consumers feel wealthier, which in turn encourages them to spend more, so there is a larger quantity of goods and services demanded; (2) a lower price level reduces the interest rate, enouraging greater spending on investment, so there is a larger quantity of goods and services demanded; (3) a fall in the U.S. price level causes U.S. interest rates to fall, so the real exchange rate depreciates, stimulating U.S. net exports, so there is a larger quantity of goods and services demande.

2.The long-run aggregate supply curve is vertical because in the long run, an economy’s supply of goods and services depends on its supplies of capital, labor, and natural resources and on the available production technology used to turn these resources into goods and services. The price level does not affect these long-run dererminants of real GDP.

3.The aggregated-demand curve might shift to the left when something (other than a rise in the price level )causes a reduction in consumption spending(such as a desire for increased saving), a reduction in investment spending(such as increased taxes on the returns to investment), decreased government spending(such as a cutback in defense spending), or reduced net exports(such as when foreign economics go into recession, so our exports fall.)

Figure 4 traces through the steps of such a shift in aggregate demand. The economy begins in equilibrium, with short-run aggregate supply, AS1, intersecting

aggregate demand, AD1 , at point A. When the aggregate-demand curve shifts to the left to AD2 , the economy moves from point A to point B, reducing the price level and the quantity of output. Over time, people adjust their perceptions, wages, and prices, shifting the short-run aggregate-supply curve down to AS2, and moving the economy from point B to point C, which is back on the long-run aggregate supply curve and has a lower price level.

4. The aggregate-supply curve might shift to the left because of a decline in the economy’s capital stock, labor supply, or productivity, or an increase in the natural rate of unemployment, all of which shift both the long-run and short-run aggregate supply curves to the left. An increase in the expected price level shifts just the short-run aggregate-supply curve(not the long-run aggregate-supply curve)to the left.

Figures 5 traces through the effects of such a shift. The economy starts in equilibrium at point A. The aggregate-supply curve then shifts to the left from AS1 to AS2. The new equilibrium is at point B, the intersection of aggregate-demand curve and AS2. As time goes on; the economy returns to long-run equilibrium at point A, as the short-run aggregate supply curve shifts back to its original position.

Unit 16 The Influence of Monetary and Fiscal Policy on Aggregate Demand

1.The theory of liquidity preference is Keynes’s theory of how the interst rate is determined. According to the thoery, the aggregate-demand curve slopes downward because: (1) a higher price level raises money demand; (2) higher money demand leads to higher interest rate; and (3) a higher interest rate reduces the quantity of goods and services demanded. Thus the price level has a negative relationship with the quantity of goods and services demanded.

2.A decrease in the money supply shifts the money-supply curve to the left. The money-supply curve now intersects the money-demand curve at a higher interest rate. The higher interest rate reduces consumption and investment, so aggregate dmand falls. Thus, the aggregate-demand curve shifts to the left.

3. If the government spends $3 billion to buy police cars, aggregate demand might increase by more than $3 billion because of the mutiple effect on aggregate demand. Aggregate demand might increase by less than $3 billion because of the crowding-out effect on aggregate demand.

4. If pessimism sweeps the country, households reduce consumption spending and firms reduce investment, so aggregate demand falls. If the Fed wants to stabilize aggregate demand, it must increase the money supply, reducing the interest rate, which will include households to save less and spend more and will encourage firms to invest more, both of which will increase aggregate demand. If the Fed does not increase the money supply, Congress could increase government purchases or reduce taxes to increase aggregate demand.

https://www.360docs.net/doc/9e13725629.html,ernment policies that act as automatic stabilizers include the tax system and government spending through the unemployment-benefit system. The tax system acts as an automatic stabilizer because when incomes are high , people pay more in taxes, so they cannot spend as much. When incomes are low, so are taxes; thus people can spend more. The result is that spending is partly stabilized. Government spending through the unemployment-benefit system acts as an automatic stabilizer because in recessions the government transfers money to the

unemployed so their incomes do not fall as much and thus their spending will not fall as much.