Mankiw 5e Chapter 2
曼昆《经济学原理》Chapter 02
10
Figure 2
The production possibilities frontier
Quantity of Computers Produced
3,000 2,200 2,000 F C The production possibilities frontier shows the combinations of output—in this case, cars and computers— that the economy can possibly produce. The economy can produce any combination on or inside the frontier. Points outside the frontier are not feasible given the economy’s resources.
6
The Economist as a Scientist
• Firms
– Produce goods and services – Use factors of production / inputs
• Households
– Own factors of production – Consume goods and services
© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
mankiw7e-chap04
Velocity
basic concept:
the rate at which money circulates
definition: the number of times the average
dollar bill changes hands in a given time period
3%
0%
-3% 1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
The connection between money and prices Inflation rate = the percentage increase
in the average level of prices.
6
The central bank
Monetary policy is conducted by a country’s
central bank.
In the U.S., the central bank is called the
Federal Reserve (“the Fed”).
In China, the central bank is People’s Bank of
20
The quantity theory of money, cont.
M
M
Y
Y
Y/Y depends on growth in the factors of production and on technological progress (all of which we take as given, for now). Hence, the Quantity Theory predicts a one-for-one relation between changes in the money growth rate and changes in the inflation rate.
Part1MonetaryPolicy,Inflation,andtheBusinessCycle
14.461Advanced Macroeconomics I(1st half)Jordi GalíMITFall2005Part1:Monetary Policy,Inflation,and the Business Cycle The lectures will provide an overview of the recent literature on dynamic optimizing models with nominal rigidities and their implications for the design of monetary policy. Lecture notes will be handed out during the course.A list of topics to be be covered and reading list with some of the key articles is provided below.Motivation and EvidenceBeyond RBC Theory.Long Run Evidence.Reduced Form Evidence.The Effects of Monetary Policy Shocks.Walsh,Carl E.(2003):Monetary Theory and Policy,Second Edition,MIT Press,chapter1.McCandless,George T.,Warren Weber(1995):“Some Monetary Facts,”Federal Reserve Bank of Minneapolis,Quartely ReviewBarro,Robert(1998):The Determinants of Economic Growth,MIT Press,chapter3. (NBER WP#5698)Bruno,Michael,and William Easterly(1998):“Inflation Crises and Long Run Growth,”Journal of Monetary Economics,vol.41,no.1,3-26Cooley,Thomas F.and Gary D.Hansen(1995):“Money and the Business Cycle,”in in T. Cooley ed.:Frontiers of Business Cycle Research(Princeton University Press),section7.2.Stock,James,and Mark W.Watson(2000):“Business Cycle Fluctuations in U.S. Macroeconomic Time Series,”in J.B.Taylor and M.Woodford eds.,Handbook of Macroeconomics,volume1A.(also NBER WP6528))Romer,Christina,and David Romer(1989):“Does Monetary Policy Matter?A New Test in the Spirit of Friedman and Schwartz,”NBER Macroeconomics Annual,4,121-170.Christiano,Lawrence J.,Martin Eichenbaum,and Charles L.Evans(1998):“Monetary Policy Shocks:What Have We Learned and to What End?,”in J.B.Taylor and M.Woodford eds.,Handbook of Macroeconomics,volume1A,65-148.(also NBER WP6400).Peersman,Gert and Frank Smets(2003):“The Monetary Transmission Mechanism in the Euro Area:More Evidence from VAR Analysis,”in Angeloni et al.(eds.)Monetary Policy Transmission in the Euro Area,Cambridge University Press,(also ECB WP no.91).Galí,Jordi(1992):”How Well Does the IS-LM Model Fit Postwar U.S.Data?,”Quarterly Journal of Economics709-738.Bernanke,Ben S.,and Ilian Mihov(1997):“Measuring Monetary Policy,”Quarterly Journal of Economics,vol.CXIII,no.3,869-902.Eichenbaum,Martin and Charles E.Evans(1995):“Some Empirical Evidence on the Effects of Shocks to Monetary Policy on Exchange Rates,”Quarterly Journal of Economics110,no.4,975-1010.Bils,Mark and Peter J.Klenow(2004):“Some Evidence on the Importance of Sticky Prices,”Journal of Political Economy,vol112(5),947-985.Dhyne,Emmanuel et al.(2005):“Price Setting in the Euro Area:Some Stylised Facts from Individual Consumer Price Data,”mimeo.Alvarez,Luis et al.(2005):“Sticky Prices in the Euro Area:Evidence from Micro-Data,”mimeo.A Simple Framework for Monetary Policy AnalysisHouseholds.Firms.Marginal costs and markups.Elements of equilibrium.Money demand. Capital accumulation.Walsh,Carl E.(2003):Monetary Theory and Policy,Second Edition,MIT Press,chapter2 (also related:chapter3)Woodford,Michael(2003):Interest and Prices:Foundations of a Theory of Monetary Policy,Princeton University Press,chapter1.Flexible PricesThe classical monetary model.Optimal price setting.Neutrality.Monetary policy rules and price level determination.Sources of non-neutrality.Optimal monetary policy. Hyperinflations.Walsh,Carl E.(2003):Monetary Theory and Policy,Second Edition,MIT Press,chapter2.Woodford,Michael(2003):Interest and Prices:Foundations of a Theory of Monetary Policy,Princeton University Press,chapter2.Cooley,Thomas F.and Gary D.Hansen(1995):“Money and the Business Cycle,”in in T. Cooley ed.:Frontiers of Business Cycle Research(Princeton University Press).Cooley,Thomas F.and Gary D.Hansen(1989):“Inflation Tax in a Real Business Cycle Model,”American Economic Review79,733-748.King,Robert G.,and Mark Watson(1996):“Money,Prices,Interest Rates,and the Business Cycle,”Review of Economics and Statistics,vol78,no1,35-53.Chari,V.V.,and Patrick J.Kehoe(1999):“Optimal Fiscal and Monetary Policy,”in in J.B. Taylor and M.Woodford eds.,Handbook of Macroeconomics,volume1C,1671-1745.Correia,Isabel,and Pedro Teles(1999):“The Optimal Inflation Tax,”Review of Economic Dynamics,vol.2,no.2325-346.A Baseline Sticky Price ModelThe Calvo model.The new Keynesian Phillips curve.The output gap and the natural rate of interest.The effects of monetary policy shocks.Evidence on inflation dynamics.Alternative time-dependent models:convex price adjustment costs,the Taylor model,the truncated Calvo model.State-dependent models.Walsh,Carl E.(2003):Monetary Theory and Policy,Second Edition,MIT Press,chapter5.Woodford,Michael(2003):Interest and Prices:Foundations of a Theory of MonetaryPolicy,Princeton University Press,chapter4.Calvo,Guillermo(1983):“Staggered Prices in a Utility Maximizing Framework,”Journal of Monetary Economics,12,383-398.Yun,Tack(1996):“Nominal Price Rigidity,Money Supply Endogeneity,and Business Cycles,”Journal of Monetary Economics37,345-370.King,Robert G.,and Alexander L.Wolman(1996):“Inflation Targeting in a St.Louis Model of the21st Century,”Federal Reserve Bank of St.Louis Review,vol.78,no.3.(NBER WP#5507).Fuhrer,Jeffrey C.and George R.Moore(1995):“Inflation Persistence”,Quarterly Journal of Economics,Vol.110,February,pp127-159.Galí,Jordi and Mark Gertler(1998):“Inflation Dynamics:A Structural Econometric Analysis,”Journal of Monetary Economics,vol44,no.2,195-222.Sbordone,Argia(2002):“Prices and Unit Labor Costs:A New Test of Price Stickiness,”Journal of Monetary Economics,vol.49,no.2,265-292.Galí,Jordi,Mark Gertler,David López-Salido(2001):“European Inflation Dynamics,”European Economic Review vol.45,no.7,1237-1270.Galí,Jordi,Mark Gertler,David López-Salido(2005):“Robustness of the Estimates of the Hybrid New Keynesian Phillips Curve,”Journal of Monetary Economics,forthcoming.Eichenbaum,Martin and Jonas D.M.Fisher(2004):“Evaluating the Calvo Model of Sticky Prices,”NBER WP10617.Mankiw,N.Gregory and Ricardo Reis(2002):“Sticky Information vs.Sticky Prices:A Proposal to Replace the New Keynesian Phillips Curve,”Quartely Journal of Economics,vol. CXVII,issue4,1295-1328.Rotemberg,Julio(1996):“Prices,Output,and Hours:An Empirical Analysis Based on a Sticky Price Model,”Journal of Monetary Economics37,505-533.Chari,V.V.,Patrick J.Kehoe,Ellen R.McGrattan(2000):“Sticky Price Models of the Business Cycle:Can the Contract Multiplier Solve the Persistence Problem?,”Econometrica, vol.68,no.5,1151-1180.Wolman,Alexander(1999):“Sticky Prices,Marginal Cost,and the Behavior of Inflation,”Economic Quarterly,vol85,no.4,29-48.Dotsey,Michael,Robert G.King,and Alexander L.Wolman(1999):“State Dependent Pricing and the General Equilibrium Dynamics of Money and Output,”Quarterly Journal of Economics,vol.CXIV,issue2,655-690.Dotsey,Michael,and Robert G.King(2005):“Implications of State Dependent Pricing for Dynamic Macroeconomic Models,”Journal of Monetary Economics,52,213-242.Golosov,Mikhail,Robert E.Lucas(2005):“Menu Costs and Phillips Curves”mimeo.Gertler,Mark and John Leahy(2005):“A Phillips Curve with an Ss Foundation,”mimeo.Monetary Policy Design in the Baseline ModelA benchmark case.Optimal monetary policy and its implementation.The Taylor Principle. Simple Monetary Policy Rules.Second order approximation to welfare losses.Evidence on Monetary Policy rules.The effects of technology shocks:theory and evidence.Galí,Jordi(2003):“New Perspectives on Monetary Policy,Inflation,and the BusinessCycle,”in Advances in Economics and Econometrics,volume III,edited by M.Dewatripont, L.Hansen,and S.Turnovsky,Cambridge University Press(also available as NBER WP#8767).Woodford,Michael(2003):Interest and Prices:Foundations of a Theory of Monetary Policy,Princeton University Press,chapter6.Yun,Tack(2005):“Optimal Monetary Policy with Relative Price Distortions”American Economic Review,vol.95,no.1,89-109Blanchard,Olivier and Charles Kahn(1980),“The Solution of Linear Difference Models under Rational Expectations”,Econometrica,48,1305-1311Bullard,James,and Kaushik Mitra(2002):“Learning About Monetary Policy Rules,”Journal of Monetary Economics,vol.49,no.6,1105-1130.Woodford,Michael(2001):“The Taylor Rule and Optimal Monetary Policy,”American Economic Review91(2):232-237(2001).Rotemberg,Julio and Michael Woodford(1999):“Interest Rate Rules in an Estimated Sticky Price Model,”in J.B.Taylor ed.,Monetary Policy Rules,University of Chicago Press.Benhabib,Jess,Stephanie Schmitt-Grohe,and Martin Uribe(2001):“The Perils of Taylor Rules,”Journal of Economic Theory96,40-69.Levin,Andrew,Volker Wieland,and John C.Williams(2003):“The Performance of Forecast-Based Monetary Policy Rules under Model Uncertainty,”American Economic Review,vol.93,no.3,622-645.Clarida,Richard,Jordi Galí,and Mark Gertler(2000):“Monetary Policy Rules and Macroeconomic Stability:Evidence and Some Theory,”Quarterly Journal of Economics,vol. 115,issue1,147-180.Taylor,John B.(1998):“An Historical Analysis of Monetary Policy Rules,”in J.B.Taylor ed.,Monetary Policy Rules,University of Chicago Press.Orphanides,Athanasios(2003):“The Quest for Prosperity Without Inflation,”Journal of Monetary Economics50,633-663Galí,Jordi(1999):“Technology,Employment,and the Business Cycle:Do Technology Shocks Explain Aggregate Fluctuations?,”American Economic Review,vol.89,no.1,249-271.Basu,Susanto,John Fernald,and Miles Kimball(2004):“Are Technology Improvements Contractionary?,”American Economic Review,forthcoming(also NBER WP#10592).Francis,Neville,and Valerie Ramey(2005):“Is the Technology-Driven Real Business Cycle Hypothesis Dead?Shocks and Aggregate FLuctuations Revisited,”Journal of Monetary Economics,forthcoming.Galí,Jordi and Pau Rabanal(2004):“Technology Shocks and Aggregate Fluctuations: How Well Does the RBC Model Fit Postwar U.S.Data?,”NBER Macroeconomics Annual 2004,225-288.(also as NBER WP#10636).Christiano,Lawrence,Martin Eichenbaum,and Robert Vigfusson(2003):“What happens after a Technology Shock?,”NBER WP#9819.Galí,Jordi,J.David López-Salido,and Javier Vallés(2003):“Technology Shocks and Monetary Policy:Assessing the Fed’s Performance,”Journal of Monetary Economics,vol.50, no.4.,723-743.Extensions of the Baseline Model and their Implications for Monetary PolicyCost-push shocks.Nominal wage rigidities.Monetary frictions.Inflation inertia.Real wage rigidities.Steady state distortions.Estimated medium-scale models.Giannoni,Marc P.,and Michael Woodford(2003):“Optimal Inflation Targeting Rules,”in B.Bernanke and M.Woodford,eds.The Inflation Targeting Debate,Chicago,Chicago University Press.(also NBER WP#9939).Woodford,Michael(2003):Interest and Prices:Foundations of a Theory of Monetary Policy,Princeton University Press,chapters6-8.Clarida,Richard,Jordi Galí,and Mark Gertler(1999):“The Science of Monetary Policy:A New Keynesian Perspective,”Journal of Economic Literature,vol.37,no.4,1661-1707.Erceg,Christopher J.,Dale W.Henderson,and Andrew T.Levin(2000):“Optimal Monetary Policy with Staggered Wage and Price Contracts,”Journal of Monetary Economics vol.46,no.2,281-314.Huang,Kevin X.D.,and Zheng Liu.(2002):“Staggered Price-setting,staggeredwage-setting and business cycle persistence,”Journal of Monetary Economics,vo.49,405-433.Woodford,Michael(2003):“Optimal Interest Rate Smoothing,”Review of Economic Studies,vol.70,no.4,861-886.Steinsson,Jón(2003):“Optimal Monetary Policy in an Economy with Inflation Persistence,”Journal of Monetary Economics,vol.50,no.7.Blanchard,Olivier J.and Jordi Galí(2005):“Real Wage Rigidities and the Nw Keynesian Model”mimeo.Benigno,Pierpaolo,and Michael Woodford(2005):“Inflation Stabilization and Welfare: the Case of a Distorted Steady State”Journal of the European Economic Association, forthcoming.Khan,Aubhik,Robert G.King and Alexander L.Wolman(2003):“Optimal Monetary Policy,”Review of Economic Studies,825-860.Christiano,Lawrence J.,Martin Eichenbaum,and Charles L.Evans(2001):“Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy,”Journal of Political EconomySmets,Frank,and Raf Wouters(2003):“An Estimated Dynamic Stochastic General Equilibrium Model of the Euro Area,”Journal of the European Economic Association,vol1, no.5,1123-1175.Monetary Policy in the Open EconomyEmpirical issues.Two country models.Small Open Economy.Monetary Unions.Local Currency Pricing.Benigno,Gianluca,and Benigno,Pierpaolo(2003):“Price Stability in Open Economies,”Review of Economic Studies,vol.70,no.4,743-764.Galí,Jordi,and Tommaso Monacelli(2005):“Monetary Policy and Exchange Rate Volatility in a Small Open Economy,”Review of Economic Studies,vol.72,issue3,2005,707-734.Clarida,Richard,Jordi Galí,and Mark Gertler(2002):“A Simple Framework for International Monetary Policy Analysis,”Journal of Monetary Economics,vol.49,no.5, 879-904.Benigno,Pierpaolo(2004):“Optimal Monetary Policy in a Currency Area,”Journal of International Economics,vol.63,issue2,293-320.Monetary and Fiscal Policy InteractionsFiscal policy rules and equilibrium determination.Distortionary taxes and optimal policy. Non-Ricardian economies and the effects ernment spending.Optimal monetary and fiscal policy in currency unions.Leeper,Eric(1991):“Equilibria under Active and Passive Monetary Policies,”Journal of Monetary Economic s27,129-147.Sims,Christopher A.(1994):“A Simple Model for the Determination of the Price Level and the Interaction of Monetary and Fiscal Policy,”Economic Theory,vol.4,381-399.Woodford,Michael(1996):“Control of the Public Debt:A Requirement for Price Stability,”NBER WP#5684.Davig,Troy and Eric Leeper(2005):“Fluctuating Macro Policies and the Fiscal Theory,”mimeo.Schmitt-Grohé,Stephanie,and Martin Uribe(2004):“Optimal Fiscal and Monetary Policy under Sticky Prices,”Journal of Economic Theory114,198-230Schmitt-Grohé,Stephanie,and Martin Uribe(2003):“Optimal Simple and Implementable Monetary and Fiscal Rules,”NBER WP#10253.Blanchard,Olivier and Roberto Perotti(2002),“An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output,”Quarterly Journal of Economics,vol CXVII,issue4,1329-1368.Fatás,Antonio and Ilian Mihov(2001),“The Effects of Fiscal Policy on Consumption and Employment:Theory and Evidence,”INSEAD,mimeo.Galí,Jordi,J.David López-Salido and Javier Vallés(2005):“Understanding the Effects of Government Spending on Consumption,”mimeo.Galí,Jordi,and Tommaso Monacelli(2005):“Optimal Monetary and Fiscal Policy in a Currency Union:A New Keynesian Perspective,”miemo.。
生产率的决定
2.2 How Productivity Is Determined
Technological Change and Innovation
• Technological Change denotes changes in the processes of production or introduction of new products or services.
4. Technological Knowledge
• society’s understanding of the best ways to produce goods and services.
• Human capital refers to the resources expended tabor force.
2) Human capital is a produced factor of production. 3) Producing human capital requires inputs in the form of
teachers, libraries, and student time. Indeed, students can be viewed as “workers” who have the important job of producing the human capital that will be used in future production. (Mankiw, Principles of Economics(third edition), chapter25, P542.)
b) Fundamental product inventions基础性产品发明 include the telephone, the radio, the airplane, the photograph, the television, the computer and the VCR. (Samuelson, Economics,
曼昆《经济学原理》第5版全
45
家庭
图1 ：循环流量图
收益
物品与 劳务出 售
企业
物品与劳务 市场
支出 物品与 劳务购 买 家庭 劳动，土地 和资本
的是边际修理（变速器）的收益与成本
由A情形到B情形激励的改变导致你决策的改变
12
人们如何相互交 易
人们如何相互交易
原理 5 :贸易可以使每个人的状况都变得更好
人们可以专门生产一种物品或劳务并用来交换其他
物品或劳务，而不必自给自足
国家之间也能从贸易与专业化中受益 将他们生产的物品出口而得到一个更好的价格 从国外进口更便宜的物品而不用在国内自己生产
原理 9 :当政府发行了过多货币时，物价上升
通货膨胀：物价总水平的上升 长期而言，通货膨胀总是由于货币数量的过度增长
而导致货币价值的下降所引起
政府创造货币的速度越快，通胀率越高
经济学十大原理
25
整体经济如何运行
原理 10 :社会面临通货膨胀与失业之间的短期权衡 取舍
短期内（1-2年），许多经济政策朝相反的方向推
动通货膨胀与失业
其它因素使这种权衡取舍不那么明显，但这种权衡
取舍一直都存在
经济学十大原理
26
参考资料：如何阅读本书
1. 上课之前先读书
你将从课堂上领会更多东西 2. 要总结，而不是划重点线 划重点线是一种消极的做法，它不能帮助你理解或 记忆。相反，用你自己的话总结每一节的内容，然 后与该章结尾的内容提要相比较
经济学十大原理
30
内容提要
关于个同目标之间的权衡取舍 任何一种行为的成本可以用其所放弃的机会来衡
量
理性人通过比较边际成本与边际利益做出决策 人们根据他们所面临的激励改变自己的行为
Principles of Microeconomics - Mankiw
CHAPTER 1 TEN PRINCIPLES OF ECONOMICS
5
Or consider parents deciding how to spend their family income. They can buy food, clothing, or a family vacation. Or they can save some of the family income for retirement or the children’s college education. When they choose to spend an extra dollar on one of these goods, they have one less dollar to spend on some other good.
PRINCIPLE #1: PEOPLE FACE TRADEOFFS
The first lesson about making decisions is summarized in the adage: “There is no such thing as a free lunch.” To get one thing that we like, we usually have to give up another thing that we like. Making decisions requires trading off one goal against another.
HOW PEOPLE MAKE DECISIONS
There is no mystery to what an “economy” is. Whether we are talking about the economy of Los Angeles, of the United States, or of the whole world, an economy is just a group of people interacting with one another as they go about their lives. Because the behavior of an economy reflects the behavior of the individuals who make up the economy, we start our study of economics with four principles of individual decisionmaking.
暗之探险队主角选择流程攻略 (2)
主角タイプ(姓名)..............♂(男).............♀(女)フシギダネ(妙蛙种子)...さみしがり(孤独)....すなお(坦率)ヒトカゲ(小火龙).......すなお(坦率)........ゆうかん(勇敢)ゼニガメ(杰尼龟).......きまぐれ(浮躁)......ずぶとい(大胆)ピカチュウ(皮卡丘) .....ゆうかん(勇敢)......せっかち(急躁)ニャース(喵喵).........なまいき(狂妄)......のんき(悠闲)チコリータ(菊草叶).....おだやか(沉着)......れいせい(冷静)ヒノアラシ(火球鼠）....おくびょう(胆小)....おだやか(沉着) ワニノコ(小锯鳄）......ようき(开朗)........なまいき(狂妄)キモリ(草蜥蜴）........れいせい(冷静)......がんばりや(实干)アチャモ(小火鸡）......がんばりや(实干)....うっかりや(马虎) ミズゴロウ(水跃鱼）....うっかりや(马虎)....さみしがり(孤独) エネコ(向尾猫）........せっかち(急噪)......むじゃき(天真)ナエトル(嫩叶龟).......ずぶとい(大胆)......おくびょう(胆小)ヒコザル(小火猴）......むじゃき(天真)......わんぱく(淘气)ポッチャマ(圆企鹅）....わんぱく(淘气)......きまぐれ(浮躁)ゴンベ(刚比兽).........のんき(悠闲)........ようき(开朗)1、（明天有重要的考试，你会……）A:（通宵熬夜学习）→(实干+2)B:（听天由命）→(悠闲+2)C:（怎么？忽然觉得发烧了？）→(胆小+1)2、（和一个没怎么交谈的朋友独处在一起，你会）A:（聊天）→(沉着+1 实干+1)B:（不说话）→(浮躁+1)C:（说个理由闪人）→(胆小+2)3、（你是否有一堆买时觉得不错可已经用不上的东西？）A:（是的）→(浮躁+2 马虎+1 急噪+1)B:（不是）→(冷静+1)4、（有一块过期一天的蛋糕。
曼昆经济学原理英文书
曼昆经济学原理英文书The Economics Principles by MankiwChapter 1: Ten Principles of EconomicsChapter 2: Thinking Like an EconomistChapter 3: Interdependence and the Gains from Trade Chapter 4: The Market Forces of Supply and Demand Chapter 5: Elasticity and Its ApplicationChapter 6: Supply, Demand, and Government Policies Chapter 7: Consumers, Producers, and Efficiency of Markets Chapter 8: Application: The Costs of TaxationChapter 9: Application: International TradeChapter 10: ExternalitiesChapter 11: Public Goods and Common Resources Chapter 12: The Design of the Tax SystemChapter 13: The Costs of ProductionChapter 14: Firms in Competitive MarketsChapter 15: MonopolyChapter 16: Monopolistic CompetitionChapter 17: OligopolyChapter 18: The Markets for Factors of Production Chapter 19: Earnings and DiscriminationChapter 20: Income Inequality and PovertyChapter 21: Introduction to MacroeconomicsChapter 22: Measuring a Nation's IncomeChapter 23: Measuring the Cost of LivingChapter 24: Production and GrowthChapter 25: Saving, Investment, and the Financial System Chapter 26: The Basic Tools of FinanceChapter 27: UnemploymentChapter 28: The Monetary SystemChapter 29: Money Growth and InflationChapter 30: Open-Economy Macroeconomics: Basic Concepts Chapter 31: A Macroeconomic Theory of the Open Economy Chapter 32: Aggregate Demand and Aggregate SupplyChapter 33: The Influence of Monetary and Fiscal Policy on Aggregate DemandChapter 34: The Short-Run Trade-Off between Inflation and UnemploymentChapter 35: The Theory of Consumer ChoiceChapter 36: Frontiers of MicroeconomicsChapter 37: Monopoly and Antitrust PolicyChapter 38: Oligopoly and Game TheoryChapter 39: Externalities, Public Goods, and Environmental Policy Chapter 40: Uncertainty and InformationChapter 41: Aggregate Demand and Aggregate Supply Analysis Chapter 42: Understanding Business CyclesChapter 43: Fiscal PolicyChapter 44: Money, Banking, and Central BankingChapter 45: Monetary PolicyChapter 46: Inflation, Disinflation, and DeflationChapter 47: Exchange Rates and the International Financial SystemChapter 48: The Short - Run Trade - Off between Inflation and Unemployment RevisitedChapter 49: Macroeconomic Policy: Challenges in the Twenty - First CenturyEpilogue: 14 Big IdeasNote: The chapter titles have been abbreviated for simplicity and brevity purposes.。
DOWNLOADFULLVERSIONHERE：在这里下载完整版
The International Business Environment, Leslie Hamilton, Philip Webster, Oxford University Press, 2012, 0199596824, 9780199596829, 403 pages. Building on the success of the first edition, this text employs a wide range of examples from BRIC and CIVETS economies and provides chapters on both CSR and the ecological environment as well as a new chapter on country assessment. An extensive library of video links is also offered, as part of an extensive Online Resource Centre, to bring this exciting subject to life for students. 'Counterpoint' boxes have been introduced to bring a more critical approach to the text, covering issues such as GDP and the quality of life; Porter's Five Forces Model and its critics; Investing in Africa; and the European Emissions Trading System. The book outlines the process of globalization, the global economy, and the impact this has on international business organizations. Using a PESTLE framework the text analyses the economic, political, legal, financial, technological, socio-cultural and ecological environments, thereby clearly outlining the factors which affect the everyday business of organizations. Adopting a truly international approach, the text is a well designed, full colour textbook with a range of features including examples and case studies to encourage a systematic analysis of international business environmental issues. Each chapter begins and ends with a one page case study; in addition there are more than 50 up-to-date mini-cases within the text. This second edition has been fully updated to cover, amongst a wealth of new developments, the global financial crisis and the latest ecological issues. Online Resource Centre Student resources: 1. Web links (5 per chapter) 2. Web exercises (2 per chapter) 3. Multiple choice questions (10 per chapter) 4. Interactive world map 5. Glossary 6. Video library featuring links to clips on YouTube and other sites Lecturer resources: 1. Answers to case study questions in the book 2. Answers to review questions. 3. Power Point slides. 4. Exam/Assignment questions 5. Figures, tables and photos from the book. 6. Case study updates.. DOWNLOAD FULL VERSION HEREEconomics , N. Gregory Mankiw, Mark P. Taylor, 2006, Economics, 830 pages. Economics is the UK and European adaptation of Greg Mankiw s classic textbook, expertly adapted by Mark Taylor so as to be even more relevant to a UK and European audience. A ....Cases and exercises in international business , Charles A. Rarick, 2003, , 181 pages. This casebook provides readers with an application-oriented approach to learning international business, allowing them to apply text material to problems relevant to global ....The international business environment a management guide, Harold Joseph Heck, American Management Association, 1969, Business & Economics, 192 pages. .International Business Environment Global and Local Marketplace in a Changing World, Janet Morrison, Apr 16, 2006, , 448 pages. The book offers a clear and accessible introduction to the key dimensions of the international business environment, including economic, political, cultural, technological and ....Making sense a student's guide to research and writing : geography & environmental sciences, Margot Northey, David B. Knight, 2001, Report writing, 252 pages. This new edition provides a greater attention to the role of computers in various forms of writing, additional material on library use, new information on the use of the ....Economics for Business. David Begg, Damian Ward , David K H Begg, Nov 1, 2009, , 442 pages. Offering an integrative approach, this book uses references to real-world examples to demonstrate how modern economics can illuminate the problems that businesses face every ....World business globalization, analysis, and strategy, John S. Hill, 2005, , 600 pages. This text includes many traditional International Business topics such as Internationalization and Global Strategy. While most texts take a functional approach (i.e. Marketing ....Global Shift Reshaping the Global Economic Map in the 21st Century, Peter Dicken, Apr 18, 2003, Science, 632 pages. The completely revised and updated Fourth Edition includes: - examples drawn from across the world - customized maps, graphs, tables and diagrams - notes for further reading at....The 8th Habit From Effectiveness to Greatness, Stephen R. Covey, Nov 9, 2004, Business & Economics, 409 pages. A leading management consultant draws on his seven organizational rules for improving effectiveness to present an eighth principle, voice, that is based on the right balance of ....International Business 2/e , Concepts, Environment And Strategy , Vyuptakesh Sharan, 2006, Business, 554 pages. .International Business, Volume 13 , Alan M. Rugman, Simon Collinson, Richard Michael Hodgetts, 2006, Business & Economics, 664 pages. Key features include: 100 up-to-date cases on organizations such as Sony, Amazon, Carrefour and Kodak; detailed exploration of culture, corporate responsibility and the natural ....。
《异度装甲》完全攻略
《异度装甲》完全攻略DISK1CHAPTER 1 はじまりは、山奥の村ラハン“恩，终于画完了，”飞（フェイ）伸了个懒腰，“好吧，是时候休息一下了。
”（现在就可以控制飞了，先熟悉一下各键的功能吧）上楼和村长面前的迪莫西谈话（一个小技巧，如果谈话时可以走动，说明此次交谈无关紧要；反之，则是剧情对话或重要对话）。
刚要出门，阿露露的弟弟丹闯了进来，发了一通牢骚后，要飞来外面和他谈谈。
出村长家找到丹，他竟要求你带着姐姐私奔（汗……），此处两个选项，分别是答应和拒绝，选哪个都不要紧。
接下来去见阿露露，她家门口站着一个女的，很好找。
到2楼和阿露露谈话，答应帮她去向希坦（シタン）先生借照相机和灯（不得不PS一下，阿露露家的BGM很好听）。
在离开村子前，先把村子里的宝物搜刮一空吧，到了先生家后就再也回不来了。
一切准备就绪后，出发！（阿露露的家）CHAPTER 2 谷をこえ、ひとり山道をゆけば没什么要特别注意的，记得去拿宝箱和蜘蛛。
有一处地方要用大跳（加速+跳）。
这里的敌人是狼和小猪（汗……），狼会用连续攻击，小猪会用HP吸收，都很容易对付，找找战斗的感觉吧。
过了吊桥，朝右上方走就到了先生家。
CHAPTER 3 つかの間の平穏山頂の家にて先去厨房见见唯阿姨和先生的女儿米多莉（ミドリ）吧，听唯阿姨说先生在机械屋那边，过去看看，果然在屋顶看到了希坦。
他让飞先等等，于是飞走进屋里，发现一个奇怪的盒子，调查一下，居然是一个会演奏音乐的天使像。
这时先生也进来了，一番寒喧后，大家准备去吃晚餐了。
然而，当飞一出门，天使像突然碎掉--这，难道是什么预兆吗？希坦若有所思。
CHAPTER 4 夜道で見た！闇にふるもの晚饭后告辞先生一家，朝村子走去。
刚走到吊桥，听到巨大的轰鸣声，还有东西从头上飞过。
这时先生匆匆赶到，据他说这是邻国基斯雷夫的机甲群。
正说着，从ラハン村方向传来了爆炸声！两人急忙赶去……村里要打一场机甲战，对手是2架ムシャ百式，HP只有150左右，想输都难。
MANKIW'S MACROECONOMICS MODULES
Ara Vahan Simidian
(June 24, 1928 - December 19, 2008)
May he continue to enjoy learning and loving economics from heaven above.
Chapter One
Ara Vahan Simidian 2 with Mankiw’s Macroeconomics Modules author, Mannig J. Simidian, 2007.
In Memoriam
Mankiw’s Macroeconomics Modules for Macroeconomics 7th ed. are dedicated to the loving memory of my cherished father, best friend and mentor. Daddy– you are still my inspiration for making sure these tutorials are the best they can be for students worldwide!
Price P*
Supply
This is the most famous economic model. It describes the ubiquitous relationship between buyers and sellers in the market. The point of intersection is called an 6 equilibrium.
Demand
Chapter One
Q * Quantity
Market clearing is an alignment process whereby decisions between suppliers and demanders reach an equilibrium. Here’s how it works. Let’s say you begin with a demand and supply curve for CDs. Remember that the demand curve slopes downward meaning that as you increase the price (by moving along the demand curve), the quantity demanded decreases. Conversely, the supply curve slopes upward implying that as the price increases (by moving along the supply curve), the amount supplied will increase. The center point A is where market D S D ´ P decisions reach an equilibrium. B Now, suppose that there is a sudden P´ A increase in the demand for CDs. P* Demand will shift from D to D´. The increase in demand places upward pressure on the price to point B since the original price, P* no longer clears 7 the Chapter One Q ´ Q* Q market. Notice the ―shortage.‖
Mankiw 5e Chapter 6
Mankiw 5e Chapter 6If the rate of unemployment is neither rising nor falling, then the number of people finding jobs must equal the number of peopleA. unemployed.B. losing or leaving jobs.C. looking for jobs.D. leaving the labor force.1 out of 1Correct. The answer is B. The number of people leaving jobs must equal the number of people finding jobs for the rate of unemployment to be constant. See Section 6-1.If the rate of job finding rises, the natural rate of unemployment willA. remain constant.B. increase.C. decrease.D. rise or decline, depending on the rate of job separation.0 out of 1Incorrect. The correct answer is C. As explained in Section 6-1, the higher the rate of job finding, the lower the natural rate of unemployment.Suppose that 2 percent of the employed lose their jobs each month (s = 0.02) and 38 percent of the unemployed find a job each month (f = 0.38). Then, thesteady-state rate of unemployment isA. 2 percent.B. 5 percent.C. 16 percent.D. 36 percent.1 out of 1Correct. The answer is B. As explained in Section 6-1, thesteady-state rate of unemployment is given by U = s/(s + f).The unemployment rate is 10 percent. The rate of job separation is 5 percent. How high does the rate of job finding have to be to keep the unemployment rate constant?A. 10 percentB. 45 percentC. 50 percentD. 90 percent0 out of 1Incorrect. The correct answer is B. Since 90 percent of the labor force is working and the separation rate is 5 percent, 4.5 percent of the labor force loses its job each period. For unemployment to be constant, the same fraction of the labor force must find jobs each period. See Section 6-1.Unemployment insurance schemes mainly increaseA. frictional unemployment.B. seasonal unemployment.C. teenage unemployment.D. cyclical unemployment.1 out of 1Correct. The answer is A. Since unemployment insurance programs reduce the economic hardships associated with unemployment, they increase the amount of frictional unemployment. See Section 6-2.The unemployment caused by the time that it takes to match workers and jobs is calledA. frictional unemployment.B. the discouraged-worker effect.C. structural unemployment.D. wage rigidity.1 out of 1Correct. The answer is A. For a discussion of frictional unemployment, see Section 6-2.Frictional unemployment occurs becauseA. the minimum wage is too high.B. unions exert pressure in the labor market.C. rigidities exist in the wage-setting process.D. it takes time to match firms and workers.1 out of 1Correct. The answer is D. For a discussion of frictional unemployment, see Section 6-2.Which of the following policies would reduce the amount of frictional unemployment?A. A reduction in corporate taxesB. An increase in unemployment insuranceC. An increase in the minimum wageD. Public retraining programs0 out of 1Incorrect. The correct answer is D. Public retraining programs ease the transition of workers from declining to growing industries, therebyreducing frictional unemployment. See Section 6-2.If the government increases the amount of unemployment insurance that unemployed workers can collect, the amount of frictional unemployment would be expected toA. fall.B. remain constant.C. rise.D. first rise and then fall.1 out of 1Correct. The answer is C. If the amount of unemployment insurance rises, the economic hardships of unemployed workers are reduced, so there is less incentive to search for a new job. This causes frictional unemployment to rise. See Section 6-2.When the real wage is above the level that equilibrates supply and demand, then the quantity of labor suppliedA. depends on the nominal wage.B. is smaller than the quantity of labor demanded.C. is equal to the quantity of labor demanded.D. is greater than the quantity of labor demanded.1 out of 1Correct. The answer is D. If the real wage is above its equilibrium value, labor supply will be greater than labor demand. See Section 6-3.The unemployment resulting from wage rigidity and job rationing is calledA. the natural rate of unemployment.B. the discouraged-worker effect.C. structural unemployment.D. insiders versus outsiders.0 out of 1Incorrect. The correct answer is C. For a discussion of structural unemployment, see Section 6-3.A teenager is not able to find a job because the legal minimum wage is higher than the wage that firms are willing to offer. This situation is an example ofA. frictional unemployment.B. structural unemployment.C. cyclical unemployment.D. efficient unemployment.0 out of 1Incorrect. The correct answer is B. For a discussion of structural unemployment, see Section 6-3.Minimum-wage laws are an example ofA. collective bargaining.B. wage rigidity.C. the discouraged-worker effect.D. insiders versus outsiders.1 out of 1Correct. The answer is B. Minimum wage laws prevent the nominal wage from falling below a certain level. Thus, they cause wage rigidity. See Section 6-3.Structural unemployment results whenA. the minimum wage is set to increase in the near future.B. there is generous unemployment insurance.C. workers are temporarily laid off due to weather conditions.D. the real wage is above its market-clearing level.0 out of 1Incorrect. The correct answer is D. For a discussion of structural unemployment, see Section 6-3.Which of the following is not a cause for real wage rigidity?A. Minimum-wage lawsB. Unemployment insuranceC. Union powerD. Efficiency wages0 out of 1Incorrect. The correct answer is B. For a discussion of the causes of real wage rigidity, see Section 6-3.The unemployment caused by unions and by the threat of unionization is an instance ofA. structural unemployment.B. the discouraged-worker effect.C. efficiency wages.D. conflict between insiders and outsiders.1 out of 1Correct. The answer is D. Unemployment occurs because workers already employed by a firm (insiders) fight to keep their wages high. High wages prevent the firm from hiring new workers (outsiders). See Section 6-3.Unions may cause unemployment ifA. outsiders push wages down.B. insiders force real wages higher than the market-clearing level.C. outsiders are subject to minimum-wage legislation.D. insiders are fired and outsiders are hired.1 out of 1Correct. The answer is B. Unions may force wages above their market-clearing level, causing labor supply to be higher than labor demand. The resulting form of unemployment is called "structural unemployment." See Section 6-3.Efficiency wage theories claim that firms may pay high real wages in order toA. avoid the threat of unionization.B. make workers more productive.C. discourage unskilled workers from applying.D. reduce the level of frictional unemployment.1 out of 1Correct. The answer is B. For an explanation of efficiency wage theories, see Section 6-3.Efficiency wages do not lead toA. structural unemployment.B. wages above their equilibrium level.C. lower firm profits.D. increased worker productivity.1 out of 1Correct. The answer is C. Firms pay efficiency wages in order toincrease worker productivity. This results in higher firm profits. See Section 6-3.Which of the following statements about unemployment is true?A. Most spells of unemployment are long.B. Most unemployment is accounted for by the long-term unemployed.C. The long-term unemployed make up only a small fraction of the unemployed.D. Most people who become unemployed remain unemployed for a long time.1 out of 1Correct. The answer is B. Most spells of unemployment are short, but a large fraction of the people unemployed at any given time are in long spells of unemployment. See Section 6-4.Compared to long-term unemployment, short-term unemployment is more likely to beA. frictional unemployment.B. structural unemployment.C. a result of minimum-wage laws.D. a result of union activity.1 out of 1Correct. The answer is A. Short-term unemployment is more likely to be frictional unemployment. See Section 6-4.Suppose that 130 people are unemployed for part of a given year; 120 are unemployed for 1 month, 10 are unemployed throughout the year; what percentage of total months of unemployment is attributable to the long-term unemployed?A. 7.7 percentB. 10 percentC. 13 percentD. 50 percent1 out of 1Correct. The answer is D. There are 240 total months of unemployment, of which half are short-term and half are long-term. See Section 6-4.Measured unemployment may be lower than actual unemployment becauseA. measured unemployment does not include the frictionally unemployed.B. some individuals may want a job but have become discouraged and stopped looking for one.C. some individuals claim to be unemployed when they are not looking very seriously for a job.D. measured unemployment does not include teenage unemployment.1 out of 1Correct. The answer is B. If there are individuals who want jobs, but are discouraged and no longer looking for them, actual unemployment will be higher than measured unemployment. See Section 6-4.Discouraged workers who want jobs, but have stopped looking for jobs areA. frictionally unemployed.B. unemployed due to structural unemployment.C. no longer in the labor force.D. helped by minimum-wage legislation.1 out of 1Correct. The answer is C. Individuals who are not working or actively searching for a job are not considered to be part of the labor force. See Section 6-4.Many economists believe that the rise in European unemployment is caused byA. generous government benefits.B. the decreased influence of union insiders.C. an increase in the number of younger workers who have higher rates of unemployment.D. economic inequality.1 out of 1Correct. The answer is A. Many European countries allow their unemployed to collect benefits indefinitely. This makes taking a job a less attractive alternative. See Section 6-4.。
Principles of Economics, 5th Edition 曼昆
§ Increase in income causes
(Demand for an inferior good is ____________ related to income. An increase in income shifts D curves for inferior goods to the _______.)
§ Anything that causes a shift in tastes toward a
good
§ Example:
The Atkins diet became popular in the ’90s, caused an increase in demand for eggs, shifted the egg demand curve to the right.
15
ACTIVE LEARNING 1
Demand Curve
Draw a demand curve for music downloads. What happens to it in each of the following scenarios? Why?
A. The price of iPods falls
§ Suppose Starbucks and Jitters are the only two
sellers in this market. (Qs = quantity supplied)
Price Starbucks
Jitters
Market Qs
$0.00
0
+0
=
0
1.00
3
+2
=
mankiw7e-chap02
and services.
G excludes transfer payments
(e.g., unemployment insurance payments), because they do not represent spending on goods and services.
total output
total expenditure
the sum of value-added at all stages
in the production of final goods
CHAPTER 2
The Data of Macroeconomics
19
Real vs. nominal GDP
CHAPTER 2
The Data of Macroeconomics
14
FYI: U.S. Government Spending, 2008
$ billions
Govt spending $ቤተ መጻሕፍቲ ባይዱ,882.4
% of GDP
20.2%
- Federal
Non-defense
1,071.9
337.0
Unsold output goes into inventory,
and is counted as “inventory investment”… …whether or not the inventory buildup was intentional.
In effect, we are assuming that
Chapter 2: The Data of Macroeconomics
mankiw7e-chap18
N. Gregory Mankiw
PowerPoint® Slides by Ron Cronovich
CHAPTER
18
Investment
© 2010 Worth Publishers, all rights reserved
SEVENTH EDITION
In this chapter, you will learn:
11
The rental firm’s profit rate
A firm’s net investment depends on its profit rate:
P ro fit ra te =
R P
PK P
r
= M PK
PK P
r
If profit rate > 01
The equilibrium R/P would increase if:
K (e.g., earthquake or war) L (e.g., pop. growth or immigration) A (technological improvement, or deregulation)
1. Production firms rent the capital they use to produce goods and services. 2. Rental firms own capital, rent it to production firms.
In this context, “investment” is the rental firms’ spending on new capital goods.
曼昆《经济学原理第三版》第1-12章(上)微观分册原版中英文双语PPT课件(很经典)
1.人们面临权衡取舍
为了得到我们喜爱的一件东西，我们 通常不得不放弃另一件喜爱的东西。
大炮 vs.黄油 食物 vs. 衣服 休闲 vs. 工作 效率 vs. 平等
作决策时需要在两个目标之间权衡取舍
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Principles of Economics
Third Edition by
N. Gregory Mankiw
经济学原理
（第三版）
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
1
INTRODUCTION 导言
Guns v. butter Food v. clothing Leisure time v. work Efficiency v. equity
Making decisions requires trading off one goal against another.
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc.
Ten Principles of Economics
经济学十大原理
Chapter 1
Economy. . . 经济…
. . . The word economy comes from a Greek word for ―one who manages a household.‖
经济一词来源于希腊语，意思是 “tems and derived items copyright © 2001 by Harcourt, Inc.
Mankiw_Economics_introduction
Inflation Unemployment
It’s a short-run tradeoff!
The reasons
1.
Higher demand may cause firms to raise their prices, but in the meantime, it also encourages them to increase the quantity of goods and services they produce and to hire more workers to produce those goods and services.
6. Markets are usually a good way to organize economic activity.
Prices
are the instrument with which the invisible hand directs economic activity.
6. Markets are usually a good way to organize economic activity.
7. Governments can sometimes improve market outcomes.
2)Market failure may also be caused by market power, which is the ability of a single person or firm to unduly influence market prices. (垄断)
Ten Principles of Economics
Chapter 1
How people make decisions?
微观经济学原理曼昆英文第五章
▪ Suppose the prices of both goods rise by 20%. ▪ The good for which Qd falls the most (in percent)
has the highest price elasticity of demand. Which good is it? Why?
▪ For a narrowly defined good such as
blue jeans, there are many substitutes (khakis, shorts).
▪ There are fewer substitutes available for
broadly defined goods. (There aren’t too many substitutes for clothing, other than living in a nudist colony.)
12 – 8 x 100% = 40.0% 10
▪ The price elasticity of demand equals
40/22.2 = 1.8
ELASTICITY AND ITS APPLICATION
10
ACTIVE LEARNING 1
Calculate an elasticity
Use the following information to calculate the price elasticity of demand for hotel rooms:
ELASTICITY AND ITS APPLICATION
13
EXAMPLE 2:
“Blue Jeans” vs. “Clothing”
- 1、下载文档前请自行甄别文档内容的完整性，平台不提供额外的编辑、内容补充、找答案等附加服务。
- 2、"仅部分预览"的文档,不可在线预览部分如存在完整性等问题,可反馈申请退款(可完整预览的文档不适用该条件!)。
- 3、如文档侵犯您的权益，请联系客服反馈,我们会尽快为您处理(人工客服工作时间：9:00-18:30)。
Mankiw 5e Chapter 2Which of the following is a flow variable?A. The value of the house in which you liveB. The balance in your savings accountC. Your monthly consumption of hamburgersD. The number of hamburgers in your refrigerator at the beginning of the month0 out of 1Incorrect. The correct answer is C. As explained in Section 2-1, a flow is a quantity measured per unit time and a stock is a quantity measured at a given point in time.Which of the following is not a stock variable?A. Government debtB. The labor forceC. The amount of money held by the publicD. Inventory investment1 out of 1Correct. The answer is D. Inventory investment is a quantity measured per unit time, so it is a flow variable. See Section 2-1. GDP isA. a stock.B. a flow.C. both a stock and a flow.D. neither a stock nor a flow.1 out of 1Correct. The answer is B. GDP is a quantity measured per unit time, so it is a flow. See Section 2-1.GDP measuresA. expenditure on all final goods and services.B. total income of everyone in the economy.C. total value-added by all firms in the economy.D. all of the above.0 out of 1Incorrect. The correct answer is D. See Section 2-1 for a discussion of what GDP measures.Suppose that a farmer grows wheat and sells it to a baker for $1, the baker makes bread and sells it to a store for $2, and the store sells it to the customer for $3. This transaction increases GDP byA. $1.B. $2.C. $3.D. $6.1 out of 1Correct. The answer is C. As explained in Section 2-1, GDP includes only the value of final goods. Therefore, this transaction increases GDP by $3.Which of the following is not included in GDP?A. The salary paid to a federal judgeB. The value of housing services enjoyed by homeownersC. The value of automobile services enjoyed by car ownersD. The value-added of a shipping company that transports goods from the factory to retail stores1 out of 1Correct. The answer is C. In principle, GDP should include the imputed rent on automobiles, but in practice it does not. See Section 2-1.In which case is total expenditure in an economy not equal to total income?A. if total saving is larger than total investmentB. if net exports are not zeroC. if inventory investment is negativeD. none of the above--they are always equal0 out of 1Incorrect. The correct answer is D. As explained in Section 2-1, total expenditure in an economy always equals total income.All other things equal, GDP will rise ifA. imports rise.B. exports fall.C. durable goods consumption rises.D. military spending falls.1 out of 1Correct. The answer is C. A rise in imports, a fall in exports, or a fall in military spending will decrease GDP. A rise in durable goods consumption will increase GDP. See Section 2-1.Which of the following statements describes the difference between nominal and real GDP?A. Real GDP includes only goods; nominal GDP includes goods and services.B. Real GDP is measured using constant base-year prices; nominal GDP is measured using current prices.C. Real GDP is equal to nominal GDP less the depreciation of the capital stock.D. Real GDP is equal to nominal GDP multiplied by the CPI.1 out of 1Correct. The answer is B. For a discussion of the differences between real and nominal GDP, see Section 2-1.If production remains the same and all prices double, then real GDPA. and nominal GDP are both constant.B. is constant and nominal GDP is reduced by half.C. is constant and nominal GDP doubles.D. doubles and nominal GDP is constant.1 out of 1Correct. The answer is C. Real GDP is measured in constant prices, so it is unaffected by a price increase. Nominal GDP is measured in current prices. If prices double, so will nominal GDP. See Section 2-1. Real GDP equalsA. nominal GDP minus net exports.B. nominal GDP divided by the GDP deflator.C. nominal GDP multiplied by the GDP deflator.D. GDP minus depreciation.1 out of 1Correct. The answer is B. As explained in Section 2-1, real GDP equals nominal GDP divided by the GDP deflator.If production remains the same and all prices double relative to the base year, then the GDP deflator isA. 1/4.B. 1/2.C. 1.D. 2.1 out of 1Correct. The answer is D. As explained in Section 2-1, the GDP deflator equals nominal GDP divided by real GDP. If prices double, nominal GDP will double and real GDP will be unchanged. Therefore, the GDP deflator will equal 2.Consider the following table:APPLES/ ORANGES Year Production/Price Production/Price1995 20/ $0.50 10/$1.002000 10/ $1.00 10/$0.50If 1995 is the base year, what is the GDP deflator for 2000?A. 0B. between 0 and 1C. 1D. greater than 11 out of 1Correct. The answer is C. The GDP deflator is nominal GDP divided by real GDP. Nominal and real GDP are both $15 in 1995, so the GDPdeflator equals 1. See Section 2-1.To obtain the net domestic product (NDP), start with GDP and subtractA. depreciation.B. depreciation and indirect business taxes.C. depreciation, indirect business taxes, and corporate profits.D. depreciation, indirect business taxes, corporate profits, and social insurance contributions.1 out of 1Correct. The answer is A. For an explanation of net domestic product, see Section 2-1.To obtain national income, start with GDP and subtractA. depreciation.B. depreciation and indirect business taxes.C. depreciation, indirect business taxes, and corporate profits.D. depreciation, indirect business taxes, corporate profits, and social insurance contributions.1 out of 1Correct. The answer is B. National income equals GDP minus depreciation and indirect business taxes. See Section 2-1.Approximately what percentage of national income consists of compensation of employees?A. 10 percentB. 25 percentC. 70 percentD. 95 percent1 out of 1Correct. The answer is C. The components of national income are discussed in section 2-1.The consumer price index (CPI)A. measures the price of a fixed basket of goods and services.B. measures the price of a basket of goods and services that constantly changes as the composition of consumer spending changes.C. measures the amount of money that it takes to produce a fixed level of utility.D. is one of the many statistics in the National Income Accounts.1 out of 1Correct. The answer is A. The CPI measures the price of a fixed basket of goods. See Section 2-2.Suppose that the typical consumer buys one apple and one orange every month. In the base year 1986, the price for each was $1. In 1996, the price of apples rises to $2, and the price of oranges remains at $1. Assuming that the CPI for 1986 is equal to 1, the CPI for 1996 would be equal toA. 1/2.B. 1.C. 3/2.D. 2.1 out of 1Correct. The answer is C. The CPI measures the change in the price of the typical consumer's basket of goods. Since the price of the basket was $2 in 1986, and it is $3 in 1996, the CPI for 1996 is equal to 3/2. See Section 2-2.Consider the following table:Consumption Goods Nonconsumption GoodsYear Production Price Production Price1995 20/$0.50 10/$1.002000 10/$1.00 10/$0.50If 1995 is the base year, the CPI in 2000 isA. 0.B. 1/2.C. 1.D. 2.1 out of 1Correct. The answer is D. The CPI is a measure of the price of a fixed basket of consumption goods. Since the price of consumption goods doubled between 1995 and 2000, the 2000 CPI will equal 2. See Section 2-2.Which of the following statements about the CPI and the GDP deflator is true?A. The CPI measures the price level; the GDP deflator measures the production of an economy.B. The CPI refers to a base year; the GDP deflator always refers to the current year.C. The weights given to prices are not the same.D. The GDP deflator takes the price of imported goods into account; the CPI does not.0 out of 1Incorrect. The correct answer is C. For a discussion of the CPI and theGDP deflator, see Section 2-2.All other things equal, if the price of foreign-made cars rises, then the GDP deflatorA. and the CPI will rise by equal amounts.B. will rise and the CPI will remain the same.C. will remain the same and the CPI will rise.D. and the CPI will rise by different amounts.1 out of 1Correct. The answer is C. Goods produced abroad do not enter the GDP deflator, but are included in the CPI. See Section 2-2.General Motors increases the price of a model car produced exclusively for export to Europe. Which U.S. price index is affected?A. The CPIB. The GDP deflatorC. Both the CPI and the GDP deflatorD. Neither the CPI nor the GDP deflator1 out of 1Correct. The answer is B. The GDP deflator is affected because the cars are produced domestically. The CPI does not change because the cars are not consumed domestically. See Section 2-2.Which of the following events will cause the unemployment rate to increase?A. An increase in population, with no change in the size of the labor forceB. A proportionally equal increase in the labor force and the number of unemployed workersC. An increase in the labor force with no change in the number of employed workersD. An increase in the number of employed workers with no change in the number of unemployed workers1 out of 1Correct. The answer is C. The unemployment rate is defined as the number of unemployed workers divided by the labor force. If the labor force increases and employment does not change, the unemployment rate will increase. See Section 2-3.An example of a person who is counted as unemployed is aA. retired worker below the mandatory retirement age.B. part-time worker who would like to work full-time.C. senator who resigns her job to run for president.D. student going to school full-time.1 out of 1Correct. The answer is C. For a discussion of who is considered unemployed, see Section 2-3.Suppose that a factory worker turns 62 years old and retires from her job. Which statistic is not affected?A. Number of unemployedB. Unemployment rateC. Labor forceD. Labor-force participation rate1 out of 1Correct. The answer is A. The factory worker willingly leaves her job so she is not considered to be unemployed. See Section 2-3.Suppose that the size of the labor force is 100 million and that the unemployment rate is 5 percent. Which of the following actions would reduce the unemploymentrate the most?A. 1 million unemployed people get jobs.B. 2 million unemployed people leave the labor force.C. 3 million people join the labor force and they all get jobs.D. 10 million people join the labor force and half of them get jobs.0 out of 1Incorrect. The correct answer is B. The unemployment rate is equal to the number of unemployed workers divided by the size of the labor force. If you calculate it for each of the above situations, you will see that it is most reduced when 2 million unemployed people leave the labor force. See Section 2-3.Okun's law expresses a relationship between a change inA. the price level and a change in real GDP.B. the price level and a change in the unemployment rate.C. investment and change in the unemployment rate.D. real GDP and a change in the unemployment rate.1 out of 1Correct. The answer is D. Okun's law states a relationship between changes in real GDP and changes in the unemployment rate. See Section 2-3.Suppose that a Canadian citizen crosses the border each day to work in the United States. Her income from this job would be counted inA. U.S. GNP and Canadian GNP.B. U.S. GNP and Canadian GDP.C. U.S. GDP and Canadian GNP.D. U.S. GDP and Canadian GDP.1 out of 1Correct. The answer is C. Her income is counted as U.S. GDP and Canadian GNP. See Section 2-1 for the definitions of gross domestic product (GDP) and gross national product (GNP).Suppose that an Italian working in the United States renounces his Italian citizenship and is granted U.S. citizenship. Which of the following will happen?A. Italian GDP will fall; U.S. GNP will rise.B. Italian GNP will fall; U.S. GNP will rise.C. Italian GDP will fall; U.S. GDP will rise.D. Italian GNP will fall; U.S. GDP will rises1 out of 1Correct. The answer is B. The worker's income was counted as Italian GNP and U.S. GDP. After the worker becomes a U.S. citizen, his income is counted as U.S. GNP and GDP. Therefore, Italian GNP falls and U.S. GNP rises. See Section 2-1.。