曼昆《经济学原理》(宏观)第五版测试题库 (30)
曼昆第五版复习经济学原理试题 (1)
一、选择题：（每小题1分，共20分）1.一国的生产可能性曲线上的点表示（D）A.通货膨胀B.该国可利用的资源减少及技术水平降低C.失业或者资源没有被充分利用D.社会使用既定的生产资源所能生产商品的最大组合2.学校里一块新停车场的机会成本是（ C ）A.由此引发的所有费用B.由用于建造停车场的机器设备的折旧大小决定C. 由用于其他用途产生的最大价值决定D.由在停车场停车所需的费用来决定3.下列有关无差异曲线的特点说法正确的是（ A ）A. 无差异曲线的斜率为负值B. 同一平面中，两条无差异曲线可能会相交于一点C. 无差异曲线向右上方倾斜，并凸向原点D.离原点越远，无差异曲线代表的效用水平越小4. 如果商品A和B是替代的，则A的价格下降将造成（ D ）A.A的需求曲线向右移动B.A的需求曲线向左移动B.B的需求曲线向右移动D.B的需求曲线向左移动5.两种商品中若其中的一种价格变化时，这两种商品的购买量同时增加或减少，则这两种商品的交叉价格弹性系数为（ A ）A.负B.正C. 零D. 16.市场均衡要求（ D ）A.政府平衡供求双方的力量B.价格与数量相等C.价格保持不变D.在某一价格水平上，买者想要购买的数量恰好等于卖者想卖的数量7. 当总效用增加时，边际效用应该（ C ）A.为正值，并其值不断增加B. 为负值，并其值不断减少C.为正值，并其值不断减少D. 以上任何一种情况都有可能8.当生产函数Q=f （ L，K ）的APL为递减时，则MPL（ D ）。
A.递减且为正B.递减且为负C.为零D.上述情况都可能9.在以下四种情况中，哪一种实现了生产要素的最适组合：（ C ）A. MPK / PK<MPL/ PLB. MPK / PK>MPL / PLC. MPK / PK=MPL/ PLD. MPK / PK ≥MPL/ PL10.边际成本低于平均成本时（ B ）。
A.平均成本上升B.平均成本下降C.成本下降D.平均可变成本上升11.长期边际成本曲线呈U型的原因是（ A ）。
宏观经济学学习笔记(曼昆经济学原理)30章节
《经济学原理_宏观经济学》第30章货币增长与通货膨胀一、重要名词解释货币数量论：一种认为可得到的货币量决定物价水平，可得到的货币量的增长率决定通货膨胀率的理论。
名义变量：按货币单位衡量的变量。
真实变量：按实物单位衡量的变量。
古典二分法：名义变量和真实变量的理论区分。
货币中性：认为货币供给变动并不影响真实变量的观点。
货币流通速度：货币易手的速度。
(货币流通速度也称为货币周转率，指一单位货币每年用来购买经济中最终产品和劳务总量的平均次数。
)⨯=⨯，它把货币量、货币流通速度和经济中物品与服务产岀数量方程式：即方程式M V P Y的美元价值联系在一起。
费雪效应：名义利率对通货膨胀率所进行的一对一的调整。
皮鞋成本：当通货膨胀鼓励人们减少货币持有量时所浪费的资源。
菜单成本：改变价格的成本。
二、重要摘抄1.如果P是用货币衡量的物品与服务的价格，那么1/P就是用物品与服务衡量的货币价值。
而供给与需求决定了货币的价值，联邦储备与银行体系共同决定货币的供给，而货币需求反映了人们想以流动性形式持有的财富量。
虽然许多变量都影响货币需求，但有一个变量最为重要：经济中的平均物价水平。
在长期中，物价总水平会调整到使货币需求等于货币供给的水平。
图1 货币供给与货币需求如何决定均衡的物价水平横轴表示货币量，左边纵轴表示货币价值(1/P)，右边纵轴表示物价水平(P)。
货币供给曲线是垂直的，因为美联储将货币供给量固定了。
货币需求曲线向右下方倾斜，因为当每一美元买的东西减少时人们想持有的货币量就更多。
显然，当政府通过各种途径向经济中注入货币时创造了超额货币供给，货币供给增加；货币的注入增加了人们对物品与服务的需求，然而经济中生产物品与服务的能力并没有改变，因此这种对物品与服务需求的增加就引起价格上升；而物价水平上升又增加了货币需求量，最终导致货币价值下降，物价水平上升。
根据货币数量论，经济中可得到的货币量决定了货币的价值，而且货币量増长是通货膨胀的主要原因。
曼昆经济学原理宏观习题
经济学原理（宏观）习题一：单选题下表包含了一个只生产笔和书的经济的信息。
基年是2005年，用这些信息回答下列1-3题目。
1：2006年GDP平减指数的值是多少（）A 100;B 113;C 116;D 119;E 1382：从2005年到2006年，物价上升的百分比是（）A 0;B 13%;C 16%;D 22%;E 38%3：从2006年到2007年，真实GDP增加的百分比是（）A 0;B 7%;C 22%;D 27%;E 32%4：如果债务人和债权人就名义利率达成一致，而通货膨胀结果小于他们的预期，那么（）A债务人将以债权人受损为代价获益；B 债权人将以债务人受损为代价获益；C 债权人和债务人都不会受益，因为名义利率是由合同固定的；D以上都不对5：假设你的收入从1900元增加到31000元，而CPI从122升到169，则你的生活水平可能（）A 下降了；B 提高了；C 保持不变；D 不知道基年所以无法判断6 增长的机会成本是（）A 现期投资减少；B 现期储蓄减少；C 现期消费减少；D 税收减少7 如果可贷资金的供给非常缺乏弹性（陡峭），那么哪一种政策可能使储蓄和投资增加最多（）A 投资赋税减免；B 预算赤字减少；C预算赤字增加；D以上都不对8 以下哪一组政府政策最有利于经济增长（）A 降低储蓄收益的税收，减免投资赋税，并减少赤字；B降低储蓄收益的税收，减免投资赋税，并增加赤字；C提高储蓄收益的税收，减免投资赋税，并减少赤字；D降低储蓄收益的税收，减免投资赋税，并增加赤字。
9如果GDO=1000元，消费=600元，税收=100元，政府购买=200元，储蓄和投资是多少（）A 储蓄=200元；投资=200元；B 储蓄=300元；投资=300元；C储蓄=100元；投资=200元； D储蓄=200元；投资=100元；10 如果政府既增加投资赋税减免又减少储蓄收益的税收，那么（）A 真实利率应该上升；B 真实利率应该下降；C 真实利率应该不变； D对真实利率的影响是不确定的10 现行利率上升( )A 减少了投资未来收益的现值,并减少了投资;B减少了投资未来收益的现值,并增加了投资;C增加了投资未来收益的现值,并减少了投资;D增加了投资未来收益的现值,并增加了投资;11 以下哪一项减少的投资组合风险最大( )A 在投资组合中,把股票数量从1增加到10;B在投资组合中,把股票数量从10增加到20;C在投资组合中,把股票数量从20增加到30;D 以上各项都提供了等量的风险;12 一位有注册会计师证书的会计师在相当长的时间里找不到工作,以至于他不再找工作,她被认为( )A 就业者;B 失业者;C 非劳动力;D 非成年人口13 工会如何扩大局内人与局外人工资的差别( )A 提高工会部门的工资,这会引起非工会部门的工人供给增加;B提高工会部门的工资,这会引起非工会部门的工人供给减少;C 减少非工会部门的工人需求;D增加非工会部门的工人需求;14 以下哪一种政策组合会一致地起到增加货币供给的作用？（）Ａ出售政府债券，降低法定准备金，降低贴现率；Ｂ出售政府债券，提高法定准备金，提高贴现率；Ｃ购买政府债券，提高法定准备金，降低贴现率；Ｄ购买政府债券，降低法定准备金，降低贴现率；15假设央行购买了你的1000元政府债券，如果你把这1000元全部存入银行，且法定准备金率是20%，那么央行的行为会引起货币供给总量多大的潜在变动（）Ａ 1000美元；Ｂ 4000美元；Ｃ 5000美元；Ｄ０美元16给出以下Ｔ型账户，如果法定准备金率是10%，这家银行可以谨慎地发放的贷款最多是多少（）Ａ０美元；Ｂ50美元；Ｃ150美元；Ｄ1000美元；17 假设名义利率是７％，而货币供给每年增长５％。
曼昆_宏观经济学_第五版答案(可直接复制)
P 。因此
作为一个竞争性的、追求利润最大化的企业对工人的雇用应使劳动的边际产量等于实际工资。 这同样也适用于资本的使用，应使资本的边际产量等于实际利率。
3. 在收入分配中规模收益不变的假设有什么作用？
复习题
1. 描述货币的职能。
第四章 货币与通货膨胀
【答案】货币有三种职能：价值储藏、计价单位以及交换媒介。作为一种价值储藏，货币是一 种把现在的购买力变成未来的购买力的方法；作为一种计价单位，货币提供了可以表示价格和
记录债务的单位；作为一种交换媒介，货币是我们用以购买商品与服务的东西。
通货膨胀率的变动。假设实际利率与通货膨胀无关；正如第三章中讨论的那样，是使储蓄和投 资达到均衡时的实际利率。因此通货膨胀率与名义汇率之间就有一对一的关系：如果通货膨胀 率上升
1%，那么名义利率也增长 1%。这种一对一的关系称为费雪效应。如果通货膨胀从 6% 上升到 8%，那么实际利率不变，名义汇率增长 2%。
模收益不变的条件下，经济利润为零。
4. 什么因素决定消费和投资？
【答案】消费正相关于可支配收入——完税后的收入。可支配收入越高，消费越高。投资负相 关于实际利率。投资的目的是获得利润，收益必须大于成本。由于实际利率即资本的使用成本，
实际利率越高资本使用成本就越高，因此投资需求下降。
【答案】当政府增加税收时，可支配收入下降，因此消费也下降。下降的消费数量等于增加的 税收乘以边际消费倾向（MPC）。边际消费倾向越高，增税对于消费的抑制作用越明显。由于产
量由生产要素和生产技术决定，政府购买没有改变，下降的消费数量必须由增加投资来补偿。 因为投资的增加，实际利率必然下降。因此，税收的增加导致了消费的下降，投资的增加，实 际利率的下降。
曼昆经济学原理答案30—34
A．“总需求曲线向右下方倾斜是因为它是个别物品需求曲线的水平相加。”
答：总需求GDP(y)二消费(C)十投资(／)+政府购买(G)+净出口(NX)，由于政府购买是一个固定的政策变量，而其他三个组成部分——消费、投资和净出口取决于经济状况，特别是物价水平。(1)当物价水平下降时，消费者感到更加富裕，这会鼓励他们更多地支出。(2)较低的物价水平降低了利率，鼓励了企业和家庭更多地支出于投资物品，从而增加了物品与劳务的需求量。(3)当美国物价水平下降引起美国利率下降时，实际汇率贬值，而且，这种贬值刺激了美国的净出口，从而增加了物品与劳务的需求量。由于这三个原因，总需求曲线向右下方倾斜。
答：如果企业每天调整自己的价格，那么，短期总供给曲线就是垂直的。企业不会由于物价水平上升，会认为相对价格水平上升而增加供给，因此总供给总是处于自然状态。
D．“只要经济进入一次衰退，它的长期总供给曲线就向左移动。”
答：只有经济中改变自然产量率的变动才会使长期总供给曲线移动。当经济进入一次衰退，在既定的物价水平时，经济的总需求下降，它只会移
扩张性财政政策刺激了物品与劳务需求37时它也引起了利率上升利率上升使借款变得更昂贵了对住房和企业投资品的需求减少了这就是说扩张性财政政策会挤出部分投资种挤出效应要看投资的利率敏感性而定当投资的利率敏感性大时利率的小幅度上升会引起投资大量减少
第十二篇短期经济波动
第三十一章总需求与总供给
复习题
1．写出当经济进入衰退时下降的两个宏观经济变量的名字。写出当经济进入衰退时上升的一个宏观经济变量的名字。
(3)凯恩斯主义的粘性价格理论
根据这种理论，一些物品与劳务的价格对经济状况变动的调整也是缓慢的。这种价格的缓慢调整的产生，部分是因为调整价格有成本，即所谓的菜单成本。这些菜单成本包括印刷和分发目录的成本和改变价格标签所需要的时间。由于这些成本，短期中价格可能都是粘性的。假设经济中每个企业都根据它所预期的经济状况事先宣布了它的价格。在价格宣布之后，经济经历了未预期到的货币供给紧缩，这将降低长期的物价总水平。虽然一些企业根据经济状况的变动迅速降低了自己的价格，但还有一些企业不想引起额外的菜单成本，因此暂时不调整价格。由于这些滞后，企业价格如此之高，所以它们的销售减少了，销售减少了又引起企业削减生产和就些。换句话说，由于并不是所有价格都根据变动的状况而迅速调整，未预期到的物价水平下降使一些企业的价格高于合意水平，而这些高于合意水平时价格压低了销售，并引起企业减少它们生产的物品与劳务量。
曼昆微观经济学原理第五版课后习题答案
问题与应用1．描写下列每种情况所面临的权衡取舍：A．一个家庭决定是否买一辆新车。
答：如果买新车就要减少家庭其他方面的开支，如：外出旅行，购置新家具；如果不买新车就享受不到驾驶新车外出的方便和舒适。
B．国会议员决定对国家公园支出多少。
答：对国家公园的支出数额大，国家公园的条件可以得到改善，环境会得到更好的保护。
但同时，政府可用于交通、邮电等其他公共事业的支出就会减少。
C．一个公司总裁决定是否新开一家工厂。
答：开一家新厂可以扩大企业规模，生产更多的产品。
但可能用于企业研发的资金就少了。
这样，企业开发新产品、利用新技术的进度可能会减慢。
D．一个教授决定用多少时间备课。
0答：教授若将大部分时间用于自己研究，可能会出更多成果，但备课时间减少影响学生授课质量。
E．一个刚大学毕业的学生决定是否去读研究生。
答：毕业后参加工作，可即刻获取工资收入；但继续读研究生，能接受更多知识和未来更高收益。
2．你正想决定是否去度假。
度假的大部分成本((机票、旅馆、放弃的工资))都用美元来衡量，但度假的收益是心理的。
你将如何比较收益与成本呢??答：这种心理上的收益可以用是否达到既定目标来衡量。
对于这个行动前就会作出的既定目标，我们一定有一个为实现目标而愿意承担的成本范围。
在这个可以承受的成本范围内，度假如果满足了既定目标，如：放松身心、恢复体力等等，那么，就可以说这次度假的收益至少不小于它的成本。
3．你正计划用星期六去从事业余工作，但一个朋友请你去滑雪。
去滑雪的真实成本是什么？现在假设你已计划这天在图书馆学习，这种情况下去滑雪的成本是什么？请解释之。
答：去滑雪的真实成本是周六打工所能赚到的工资，我本可以利用这段时间去工作。
如果我本计划这天在图书馆学习，那么去滑雪的成本是在这段时间里我可以获得的知识。
曼昆经济学原理试题及答案
一、名词解释(每小题5分,共50分)1。
机会成本2.科斯定理3.搭便车4。
囚徒困境5。
菲利普斯曲线6。
供应学派7.凯恩斯革命8。
看不见的手9。
比较优势10。
外部性二、简述题（第11、12、13题各12分，14题14分,共50分)1.简述银行存款的创造过程。
2.简述失业的根源及其类型.3。
简述节俭的是非。
4.根据有关经济学原理，简析我国森林减少、珍稀动物来绝的原因及解决的措施。
三、论述题（每小题25分，共计50分）1.论述人民币升值对中国经济的影响。
2。
论述政府公共投资对国民经济的作用。
一、名词解释（每小题5分，共50分）1。
机会成本：指人们利用一定资源获得某种收入时所放弃的在其他可能的用途中所能够获取的最大收入。
生产一单位的某种商品的机会成本是指生产者所放弃的使用相同的生产要素在其他生产用途中所能得到的最高收入。
机会成本的存在需要三个前提条件。
第一,资源是稀缺的;第二,资源具有多种生产用途；第三,资源的投向不受限制。
从机会成本的角度来考察生产过程时，厂商需要将生产要素投向收益最大的项目，而避免带来生产的浪费，达到资源配置的最优。
机会成本的概念是以资源的稀缺性为前提提出的.从经济资源的稀缺性这一前提出发，当一个社会或一个企业用一定的经济资源生产一定数量的一种或者几种产品时,这些经济资源就不能同时被使用在其他的生产用途方面。
这就是说，这个社会或这个企业所能获得的一定数量的产品收入，是以放弃用同样的经济资源来生产其他产品时所能获得的收入作为代价的。
这也是机会成本产生的缘由.因此，社会生产某种产品的真正成本就是它不能生产另一些产品的代价。
所以，机会成本的含义是：任何生产资源或生产要素一般都有多种不同的使用途径或机会，也就是说可以用于多种产品的生产。
但是当一定量的某种资源用于生产甲种产品时，就不能同时用于生产乙种产品。
因此生产甲种产品的真正成本就是不生产乙种产品的代价，或者是等于该种资源投放于乙种产品生产上可能获得的最大报酬.一种资源决定用于甲种产品，就牺牲了生产其他产品的机会；从事生产甲种产品的收入,是由于不从事或放弃其他产品生产的机会而产生的。
5学原理》(微观)第五版测试题库 (05曼昆经济学原理第五版测试题库(微观)
5学原理》（微观）第五版测试题库第一章：经济学原理1.经济学的主要研究对象是什么？2.什么是稀缺性原则？3.请解释机会成本是如何计算的。
4.什么是边际分析原理？5.请解释机会成本递增的概念。
第二章：供求和市场机制1.什么是需求曲线？2.请解释需求量和需求曲线之间的区别。
3.供给曲线如何表示？4.请解释市场均衡的概念。
5.什么是价格弹性？第三章：消费者行为1.什么是边际效用？2.请解释效用最大化的概念。
3.什么是收入效应？4.请解释替代效应和收入效应如何影响需求变化。
5.什么是边际替代率？第四章：生产和成本1.请解释生产函数的概念。
2.什么是边际产品？3.请解释固定成本和可变成本之间的区别。
4.什么是边际成本？5.请解释长期平均成本和短期平均成本之间的区别。
第五章：利润、市场结构和行为1.请解释利润最大化的概念。
2.什么是垄断市场？3.请解释寡头垄断和垄断竞争之间的区别。
4.什么是欧元区？5.请解释价格歧视的概念。
第六章：劳动市场1.什么是劳动力市场？2.请解释劳动需求和劳动供给之间的关系。
3.什么是劳动力市场均衡？4.请解释工资刚性的概念。
5.什么是人力资本？以上是《5学原理》（微观）第五版的测试题库，涵盖了经济学原理、供求和市场机制、消费者行为、生产和成本、利润、市场结构和行为以及劳动市场等多个方面的知识点。
在准备考试或者复习课程内容时，使用这些题目进行测试可以帮助您巩固知识，检验自己的学习成果。
祝您取得好成绩！。
曼昆《经济学原理》（宏观）第五版测试题库（30）
曼昆《经济学原理》（宏观）第五版测试题库（30）Chapter 30Money Growth and InflationTRUE/FALSE1. The inflation rate is measured as the percentage change in a price index.ANS: T DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: InflationKEY: MSC: Definitional2. U.S. prices rose at an average annual rate of about 4 percent over the last 70 years.ANS: T DIF: 1 REF: 30-0NAT: Analytic LOC: The role of money TOP: InflationMSC: Analytical3. The United States has never had deflation.ANS: F DIF: 1 REF: 30-0NAT: Analytic LOC: The role of money TOP: DeflationMSC: Definitional4. In the 1990s, U.S. prices rose at about the same rate as in the 1970s.ANS: F DIF: 1 REF: 30-0NAT: Analytic LOC: The role of money TOP: U.S. inflationMSC: Definitional5. As the price level falls, the value of money falls.ANS: F DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Value | MoneyMSC: Interpretive6. The price level is determined by the supply of, and demand for, money.ANS: T DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money marketMSC: Definitional7. If the quantity of money supplied is greater than the quantity demanded, then prices should fall.ANS: F DIF: 2 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money marketMSC: Analytical8. Dollar prices and relative prices are both nominal variables.ANS: F DIF: 1 REF: 30-1NAT: Analytic LOC: The role of moneyTOP: Nominal variables | Real variables MSC: Definitional9. The quantity equation is M x V = P x Y.ANS: T DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Quantity equationMSC: Definitional10. According to the Fisher effect, if inflation rises then the nominal interest rate rises.ANS: T DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Fisher effectMSC: Definitional11. An increase in money demand would create a surplus of money at the original value of money.ANS: F DIF: 2 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money marketMSC: Applicative201412. Hyperinflations are associated with governments printing money to finance expenditures.ANS: T DIF: 1 REF: 30-1NAT: Analytic LOC: Unemployment and inflation TOP: HyperinflationMSC: Definitional13. For a given level of money and real GDP, an increase in velocity would lead to an increase in the price level. ANS: T DIF: 2 REF: 30-1NAT: Analytic LOC: The role of money TOP: Velocity of moneyMSC: Analytical14. The quantity theory of money can explain hyperinflations but not moderate i nflation.ANS: F DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: HyperinflationMSC: Interpretive15. If P represents the price of goods and services measured in money, then 1/P is the value of money measured interms of goods and services.ANS: T DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money | ValueMSC: Interpretive16. When the value of money is on the vertical axis, an increase in the price level shifts money demand to theright.ANS: F DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money demandMSC: Applicative17. The money supply curve shifts to the left when the Fed buys government bonds.ANS: F DIF: 2 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money supplyMSC: Analytical18. When the value of money is on the vertical axis, the money supply curve slopes upward because an increase in the value of money induces banks to create more money.ANS: F DIF: 2 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money supplyMSC: Definitional19. If the Fed increases the money supply, the equilibrium value of money decreases and the equilibrium price level increases.ANS: T DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money marketMSC: Analytical20. A rising price level eliminates an excess supply of money.ANS: T DIF: 2 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money marketMSC: Analytical21. A rising value of money eliminates an excess supply of money.ANS: F DIF: 2 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money marketMSC: Analytical22. Nominal GDP measures output of final goods and services in physical terms.ANS: F DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Nominal variablesMSC: Interpretive2016 Chapter 30 /Money Growth and Inflation23. The classical dichotomy is useful for analyzing the economy because in the long run nominal variables are heavily influenced by developments in the monetary system, and real variables are not.ANS: T DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Classical dichotomyMSC: Definitional24. The irrelevance of monetary changes for real variables is called monetary neutrality. Most economists accept monetary neutrality as a good description of the economy in the long run, but not the short run.ANS: T DIF: 2 REF: 30-1NAT: Analytic LOC: The role of money TOP: Monetary neutralityMSC: Interpretive25. The quantity theory of money implies that if output and velocity are constant, then a 50 percent increase in themoney supply would lead to less than a 50 percent increase in the price level.ANS: F DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Quantity theoryMSC: Applicative26. The source of all four classic hyperinflations was high rates of money growth.ANS: T DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: HyperinflationMSC: Definitional27. In the long run, an increase in the growth rate of the money supply leads to an increase in the real interest rate,but no change in the nominal interest rate.ANS: F DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Quantity theoryMSC: Definitional28. Inflation induces people to spend more resources maintaining lower money holdings. The costs of doing thisare called shoeleather costs.ANS: T DIF: 1 REF: 30-2NAT: Analytic LOC: The role of money TOP: Shoeleather costs of inflation MSC: Definitional29. Shoeleather costs and menu costs are both costs of anticipated inflation.ANS: T DIF: 1 REF: 30-2NAT: Analytic LOC: Unemployment and inflationTOP: Shoeleather costs of inflation | Menu costs o f inflation MSC: Definitional30. For a given real interest rate, an increase in the inflation rate reduces the after-tax real interest rate.ANS: T DIF: 2 REF: 30-2NAT: Analytic LOC: Unemployment and inflation TOP:Inflation | Taxes | Real interest rate MSC: Analytical31. Inflation necessarily distorts saving when either real interest income or nominal interest income is taxed. ANS: F DIF: 2 REF: 30-2NAT: Analytic LOC: The role of money TOP: Inflation | Real interest rate MSC: Interpretive32. Inflation distorts savings when real interest income, rather than nominal interest income, is taxed.ANS: F DIF: 2 REF: 30-2NAT: Analytic LOC: The role of money TOP: Inflation | Real interest rate MSC: Interpretive33. Suppose the nominal interest rate is 10 percent; the tax rate on interest income is 28 percent, and the inflationrate is 6 percent. Then the after-tax real interest rate is -3.2 percent.ANS: F DIF: 2 REF: 30-2NAT: Analytic LOC: The role of money TOP: Taxes | Real interest rateMSC: Interpretive34. Suppose the nominal interest rate is 5 percent; the tax rate on interest income is 30 percent, and the after-taxreal interest rate is 0.8 percent. Then the inflation rate is 2.7 percent.ANS: T DIF: 2 REF: 30-2NAT: Analytic LOC: The role of money TOP: Taxes | Real interest rate MSC: Interpretive35. If the Fed were to unexpectedly increase the money supply, creditors would gain at the expense of debtors. ANS: F DIF: 1 REF: 30-2NAT: Analytic LOC: The role of moneyTOP: Wealth redistribution | Inflation MSC: Applicative36. If inflation is higher than expected, then borrowers make nominal interest payments that are less than theyexpected.ANS: F DIF: 2 REF: 30-2NAT: Analytic LOC: Unemployment and inflation TOP: Menu costs of inflationMSC: Applicative37. Inflation is costly only if it is unanticipated.ANS: F DIF: 1 REF: 30-2NAT: Analytic LOC: Unemployment and inflation TOP: Inflation costsMSC: Interpretive38. Even though monetary policy is neutral in the short run, it may have profound real effects in the long run. ANS: F DIF: 1 REF: 30-3NAT: Analytic LOC: The role of money TOP: Monetary neutralityMSC: InterpretiveSHORT ANSWER1. Why did farmers in the late 1800s dislike deflation?ANS:Most had large nominal debts. The decrease in the price level meant that they received less for what they produced and so made it harder to pay off the debts whose real value rose as prices fell.DIF: 2 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Deflation MSC: Analytical2. Explain the adjustment process in the money market that creates a change in the price level when the moneysupply increases.ANS:When the money supply increases, there is an excess supply of money at the original value of money. After the money supply increases, people have more money than they want to hold in their purses, wallets and checking accounts. They use this excess money to buy goods and services or lend it out to other people to buy goods and services. The increase in expenditures causes prices to rise and the value of money to fall. As the value of money falls, the quantity of money people want to hold increases so that the excess supply is eliminated. At the end of this process the money market is in equilibrium at a higher price level and a lower value of money.DIF: 2 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Money marketMSC: Analytical2018 Chapter 30 /Money Growth and Inflation3. Suppose the Fed sells government bonds. Use a graph of the money market to show what this does to the valueof money.ANS:When the Fed sells government bonds, the money supply decreases. This shifts the money supply curve from MS1 to MS2 and makes the value of money increase. Since money is worth more, it takes less to buy goods with it, which means the price level falls.DIF: 2 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Money marketMSC: Analytical4. Using separate graphs, demonstrate what happens to the money supply, money demand, the value of money,and the price level if:a. the Fed increases the money supply.b. people decide to demand less money at each value of money.ANS:a. The Fed increases the money supply. When the Fed increases the money supply, the money supply curveshifts right from MS1 to MS2. This shift causes the value of money to fall, so the price level rises.b. People decide to demand less money at each value of money. Since people want to hold less at eachvalue of money, it follows that the money demand curve will shift to the left from MD1 to MD2. Thedecrease in money demand results in a lower value of money and so a higher price level.DIF: 2 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Money marketMSC: Analytical5. According to the classical dichotomy, what changes nominal variables? What changes real variables? ANS:The classical dichotomy argues that nominal variables are determined primarily by developments in the monetary system such as changes in money demand and supply. Real variables are largely independent of the monetary system and are determined by productivity and real changes in the factor and loanable funds markets.DIF: 1 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Classical dichotomyMSC: Definitional6. Suppose that monetary neutrality holds. Of the following variables, which ones do not change when themoney supply increases?a. real interest ratesb. inflationc. the price leveld. real outpute. real wagesf. nominal wagesANS:a. real interest ratesd. real outpute. real wagesDIF: 1 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Monetary neutralityMSC: Interpretive7. Wages and prices are many times higher today than they were 30 years ago, yet people do not work a lot morehours or buy fewer goods. How can this be?ANS:Inflation has raised the general price level. An increase in the general price level has no effect on real variables in the long run. Wages are higher, but so are prices. Prices are higher, but so are wages and incomes. In the long run, people change their behavior in response to changes in real variables, not nominal ones.DIF: 2 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Nominal variables | Real variablesMSC: Interpretive8. Identify each of the following as nominal or real variables.a. the physical output of goods and servicesb. the overall price levelc. the dollar price of applesd. the price of apples relative to the price of orangese. the unemployment ratef. the amount that shows up on your paycheck after taxesg. the amount of goods you can purchase with the wage you get each hourh. the taxes that you pay the governmentANS:a. real variableb. nominal variablec. nominal variabled. real variablee. real variablef. nominal variableg. real variableh. nominal variableDIF: 1 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Nominal variables | Real variablesMSC: Interpretive2020 Chapter 30 /Money Growth and Inflation9. Define each of the symbols and explain the meaning o f M V = P Y.ANS:M is the quantity of money, V is the velocity of money, P is the price level, and Y is the quantity of o utput. P Y is nominal GDP. The amount people spend should equal the amount of money in the economy times the average number of times each unit of currency is spent.DIF: 1 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Velocity MSC: Definitional10. What assumptions are necessary to argue that the quantity equation implies that increases in the money supplylead to proportional changes in the price level?ANS:We must suppose that V is relatively constant and that changes in the money supply have no effect on real output. DIF: 2 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Quantity theoryMSC: Definitional11. What is the inflation tax, and how might it explain the creation of inflation by a central bank?ANS:The inflation tax refers to the fact that inflation is a tax on money. When prices rise, the value of money currently held is reduced. Hence, when a government raises revenue by printing money, it obtains resources from households by taxing their money holdings through inflation rather than by sending them a tax bill. In countries where governments are unable or unwilling to raise revenues by raising taxes explicitly, the inflation tax may be an alternative source of revenue.DIF: 1 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Inflation tax MSC: Interpretive12. Economists agree that increases in the money-supply growth rate increase inflation and that inflation isundesirable. So why have there been hyperinflations and how have they been ended?ANS:Typically, the government in countries that had hyperinflation started with high spending, inadequate tax revenue, and limited ability to borrow. Therefore, they turned to the printing presses to pay their bills. Massive and continued increases in the quantity of money led to hyperinflation, which ended when the governments instituted fiscal reforms eliminating the need for the inflation tax and subsequently slowed money supply growth.DIF: 2 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: HyperinflationMSC: Interpretive13. Suppose that velocity and output are constant and that the quantity theory and the Fisher effect both hold.What happens to inflation, real interest rates, and nominal interest rates when the money supply growth rate increases from 5 percent to 10 percent?ANS:Inflation and nominal interest rates each increase by 5 percent points. There is no change in the real interest rate or any other real variable.DIF: 1 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Inflation MSC: Analytical14. In recent years Venezuela and Russia have had much higher nominal interest rates than the United Stateswhile Japan has had lower nominal interest rates. What would you predict is true about money growth in these other countries? Why?ANS:The Fisher effect says that increases in the inflation rate lead to one-to-one increases in nominal interest rates. The quantity theory says that in the long run, inflation increases one-to-one with money supply growth. It follows that differences in nominal interest rates may be due to differences in money supply growth rates. It is reasonable to guess that much higher nominal interest rates in Venezuela and Russia indicate higher money supply growth while lower interest rates in Japan indicate lower money supply growth.DIF: 1 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Fisher effect MSC: Applicative15. The U.S. Treasury Department issues inflation-indexed bonds. What are inflation-indexed bonds and why arethey important?ANS:Inflation-indexed bonds are bonds whose interest and principal payments are adjusted upward for inflation, guaranteeing their real purchasing power in the future. They are important because they provide a safe, inflation- proof asset for savers and they may allow the Treasury to borrow more easily at a lower current cost.DIF: 1 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Index bonds MSC: Definitional16. List and define any two of the costs of high inflation.ANS:The costs include:Shoeleather costs: the resources wasted when inflation induces people to reduce their money holdings.Menu costs: the cost of more frequent price changes at higher inflation rates.Relative Price Variability: because prices change infrequently, higher inflation causes relative prices to vary more. Decisions based on relative prices are then distorted so that resources may not be allocated efficiently.Inflation Induced Tax Distortions: the income tax is not completely indexed for inflation; an increase in nominal income created by inflation results in higher real tax rates that discourage savings.Confusion and Inconvenience: inflation decreases the reliability of the unit of account making it more complicated to differentiate successful and unsuccessful firms thereby impeding the efficient allocation of funds to alternative investments.Unexpected Inflation: inflation decreases the real value of debt thereby transferring wealth from creditors to debtors. DIF: 1 REF: 30-2 NAT: AnalyticLOC: The role of money TOP: Inflation costsMSC: Definitional17. Inflation distorts relative prices. What does this mean and why does it impose a cost on society?ANS:Relative prices are the value of one good in terms of other goods. Relative prices ordinarily provide signals concerning therelative scarcity of goods so the goods may be allocated efficiently. Some prices change infrequently, so that when inflation rises, there is greater variation in relative prices. However, changes in relative prices created by inflation do not signal changes in the scarcity of goods and so lead to an inefficient allocation of goods and resources.DIF: 1 REF: 30-2 NAT: AnalyticLOC: The role of money TOP: Relative price variabilityMSC: Interpretive18. Explain how inflation affects savings.ANS:Inflation discourages savings. Income tax is collected on nominal rather than real interest rates. So an increase in inflation will increase nominal interest rates and taxes. The increase in taxes in turn lowers the real return on savings and so discourages savings.DIF: 1 REF: 30-2 NAT: AnalyticLOC: The role of money TOP: Saving | InflationMSC: Applicative2022 Chapter 30 /Money Growth and Inflation19. The U.S. Treasury Department began issuing inflation-indexed bonds in early 1997. Since these assets arevirtually risk free, both in terms of default risk and inflation risk, will they quickly replace all other kinds of assets that still entail risk of one kind or another, such as ordinary government bonds or corporate bonds?Explain.ANS:When individuals are choosing between assets of different kinds, they consider both expected return and risk. Because the new inflation-indexed bonds have very low risk, they will also have very low real interest rates. So they will not replace other, more risky assets that promise to pay a much higher real interest rate. They do, however, offer a way of escaping some inflation risk, and have become a popular addition to portfolios.DIF: 1 REF: 30-2 NAT: AnalyticLOC: The role of money TOP: Index bonds MSC: AnalyticalSec00 - Money Growth and InflationMULTIPLE CHOICE1. Over the past 70 years, prices in the U.S. have risen on average abouta. 2 percent per year.b. 4 percent per year.c. 6 percent per year.d. 8 percent per year.ANS: B DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Definitional2. Over the past 70 years, the overall price level in the U.S. has experienced a(n)a. 4-fold increase.b. 8-fold increase.c. 12-fold increase.d. 16-fold increase.ANS: D DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Definitional3. Over the last 70 years, the average annual U.S. inflation rate was abouta. 2 percent, implying that prices have increased 10-fold.b. 4 percent, implying that prices have increased 10-fold.c. 2 percent, implying that prices have increased 16-fold.d. 4 percent, implying that prices increased about 16-fold.ANS: D DIF: 2 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Definitional4. Inflation can be measured by thea. change in the consumer price index.b. percentage change in the consumer price index.c. percentage change in the price of a specific commodity.d. change in the price of a specific commodity.ANS: B DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: InflationMSC: Definitional5. Which of the following is not correct?a. The inflation rate is measured as the percentage change in a price index.b. For the last 40 or so years, U.S. inflation hasn’t shown much variation from its average rate of about 2 percent.c. During the 19th century there were long periods of falling prices.d. Some economists argue that the costs of moderate inflation are not nearly as large as the general public believes.ANS: B DIF: 2 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: InflationMSC: Interpretive6. In which of the following cases was the inflation rate 10 percent over the last year?a. One year ago the price index had a value of 110 and now it has a value of 120.b. One year ago the price index had a value of 120 and now it has a value of 132.c. One year ago the price index had a value of 126 and now it has a value of 140.d. One year ago the price index had a value of 145 and now it has a value of 163. ANS: B DIF: 2 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Applicative7. If the price level increased from 120 to 126, then what was the inflation rate?a. 3 percentb. 5 percentc. 6 percentd. None of the above is correct.ANS: B DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Applicative8. If the price level increased from 120 to 150, then what was the inflation rate?a. 30 percentb. 25 percentc. 20 percentd. None of the above is correct.ANS: B DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Applicative9. When prices are falling, economists say that there isa. disinflation.b. deflation.c. a contraction.d. an inverted inflation.ANS: B DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: DeflationMSC: Definitional10. Deflationa. increases incomes and enhances the ability of debtors to pay off their debts.b. increases incomes and reduces the ability of debtors to pay off their debts.c. decreases incomes and enhances the ability of debtors to pay off their debts.d. decreases incomes and reduces the ability of debtors to pay off their debts. ANS: D DIF: 2 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: DeflationMSC: Interpretive。
曼昆《经济学原理（宏观经济学分册...
曼昆《经济学原理（宏观经济学分册...第32章开放经济的宏观经济理论32.1复习笔记1．开放经济的宏观经济模型的两个假设（1）经济的GDP是既定的，⽤真实GDP衡量的⼀个经济物品与劳务的产量是由⽣产要素供给和所得到的投⼊变为产出的⽣产技术决定的。
（2）经济物价⽔平是既定的，物价⽔平的调整使货币的供求平衡。
2．开放经济的可贷资⾦市场开放经济的可贷资⾦市场中，可贷资⾦的供给来⾃国民储蓄（S），可贷资⾦的需求来⾃国内投资（I）和资本净流出（NCO）。
由于资本净流出既可以是正的，也可以是负的，所以它既可以增加，也可以减少由国内投资引起的可贷资⾦需求。
可贷资⾦的供给量和需求量取决于真实利率。
真实利率对国民储蓄和国内投资和资本净流出均有影响。
利率调整使可贷资⾦的供给与需求平衡。
在均衡利率时，可贷资⾦供给正好与需求平衡。
3．外汇市场真实汇率是由外汇市场上的供给与需求决定的。
外汇的供给来⾃资本净流出。
由于资本净流出不取决于真实汇率，所以，外汇供给曲线是垂直的。
外汇的需求来⾃净出⼝。
由于较低的真实汇率刺激了净出⼝（从⽽增加了为这些净出⼝⽀付需求的外汇量），需求曲线向右下⽅倾斜。
在均衡的真实汇率时，⼈们为购买外国资产⽽供给的外汇数量正好与⼈们为购买净出⼝⽽需求的外汇数量平衡。
4．开放经济中的均衡（1）资本净流出：两个市场之间的联系在可贷资⾦市场上，供给来⾃国民储蓄，需求来⾃国内投资和资本净流出，⽽且真实利率使供求平衡。
在外汇市场上，供给来⾃资本净流出，需求来⾃净出⼝，⽽且真实汇率使供求平衡。
资本净流出是联系这两个市场的变量。
在可贷资⾦市场上，资本净流出是需求的⼀部分。
在外汇市场上，资本净流出是供给的来源。
资本净流出的关键决定因素是真实利率。
图32-1表⽰利率和资本净流出之间的这种负相关关系。
这条资本净流出曲线表⽰可贷资⾦市场和外汇市场之间的联系。
图32-1资本净流出如何取决于利率（2）两个市场的同时均衡在图32-2（a）中，可贷资⾦的供给和需求决定了真实利率。
曼昆经济学原理第五版标准答案宏观
曼昆经济学原理第五版答案宏观【篇一:经济学原理曼昆(宏观部分答案)】>第二十三章一国收入的衡量复习题 1.解释为什么一个经济的收入必定等于其支出? 答：对一个整体经济而言，收入必定等于支出。
因为每一次交易都有两方:买者和卖者。
一个买者的1 美元支出是另一个卖者的1 美元收入。
因此，交易对经济的收入和支出作出了相同的贡献。
由于gｄp 既衡量总收入 13５又衡量总支出,因而无论作为总收入来衡量还是作为总支出来衡量,gdｐ都相等.2 ．生产一辆经济型轿车或生产一辆豪华型轿车,哪一个对gdp的贡献更大？为什么? 答:生产一辆豪华型轿车对gdp的贡献大。
因为gｄｐ是在某一既定时期一个国家内生产的所有最终物品与劳务的市场价值。
由于市场价格衡量人们愿意为各种不同物品支付的量,所以市场价格反映了这些物品的市场价值。
由于一辆豪华型轿车的市场价格高于一辆经济型轿车的市场价格,所以一辆豪华型轿车的市场价值高于一辆经济型轿车的市场价值，因而生产一辆豪华型轿车对gdp 的贡献更大．3 ．农民以２美元的价格把小麦卖给面包师。
面包师用小麦制成面包,以3美元的价格出售。
这些交易对ｇdｐ的贡献是多少呢？答：对ｇdp 的贡献是3美元。
ｇdp 只包括最终物品的价值，因为中间物品的价值已经包括在最终物品的价格中了.４ .许多年以前,peggy 为了收集唱片而花了500 美元。
今天她在旧货销售中把她收集的物品卖了１０0 美元.这种销售如何影响现期gｄp? 答：现期gdｐ只包括现期生产的物品与劳务，不包括涉及过去生产的东西的交易。
因而这种销售不影响现期gdp.5 .列出gdp的四个组成部分。
各举一个例子.答：gdp等于消费(c)+投资(ｉ）+政府购买(g)＋净出口(nｘ) 消费是家庭用于物品与劳务的支出,如汤姆一家人在麦当劳吃午餐.投资是资本设备、存货、新住房和建筑物的购买,如通用汽车公司建立一个汽车厂.政府购买包括地方政府、州政府和联邦政府用于物品与劳务的支出，如海军购买了一艘潜艇．净出口等于外国人购买国内生产的物品(出口)减国内购买的外国物品(进口)。
曼昆《经济学原理(宏观经济学分册)》配套题库课后习题储蓄、投资和金融体系长【圣才出品】
第26章储蓄、投资和金融体系一、概念题1．金融体系（financial system）答：金融体系指由经济中促使一个人的储蓄与另一个人的投资相匹配的机构组成。
一国金融组织体系完善与否，可以由三个标准来衡量，即适应性标准、效率性标准、稳定性标准。
（1）金融组织体系的适应性。
金融组织体系的适应性在理论上可以解释为：任何一种交易行为都只有在与之相适应的制度约束条件下才能发生，即不同的交易方式，与之相对应的制度约束框架也应该不相同。
（2）金融组织体系的效率性。
金融组织体系的效率性是指特定的金融组织体系能够保证金融交易活动低成本地顺利进行和储蓄向投资转化的程度。
（3）金融组织体系的稳定性。
金融组织体系的稳定性是指金融组织体系在保证金融稳定均衡、协调和有序运行等方面的能力状态。
2．金融市场（financial markets）答：金融市场指资金供求双方运用各种金融工具，通过各种途径实现货币借贷和资金融通的交易活动的总称。
其含义有广义和狭义之分。
广义是指金融机构与客户之间、各金融机构之间、客户与客户之间所有以资金商品为交易对象的金融交易，包括存款、贷款、信托、租赁、保险、票据抵押与贴现、股票债券买卖等全部金融活动。
狭义则一般限定在以票据和有价证券为交易对象的融资活动范围之内。
与一般商品市场相比较，金融市场的主要特征在于：（1）商品的单一性和价格的相对一致性。
金融市场的交易对象不是具有各种使用价值的物质商品，而是单一的货币形态的资金商品。
资金商品无质的差别性，即只有单一的货币形态和单一的“使用价值”——获得收益的能力。
资金商品的“价格”为利率。
由于信用期限与安全可靠程度的不同，各种不同的金融商品的利率也不相同。
它们形成一个相对稳定的结构并随资金供求关系的变化而共同变化。
（2）投资收益和风险远远超过一般商品市场。
在一般商品市场上，商品价格围绕着商品价值上下浮动，虽然市场供求状况对商品价格有重要的影响，但商品成交价格与商品实际价值的差异从长期来看是不大的。
曼昆经济学原理第五版答案英文ch30
WHAT’S NEW:The section on capital flight has been updated to include Asia and Russia. The topic of “The Twin Deficits in the United States” is now briefly discussed in the main text. There is a new In the News box on “How the Chinese Help American Home Buyers.”LEARNING OBJECTIVES:By the end of this chapter, students should understand:➢ how to build a model to explain an open economy’s trade balance and exchange rate.➢ how to use the model to analyze the effects of government budget deficits.➢ how to use the model to analyze the macroeconomic effects of trade policies.➢ how to use the model to analyze political instability and capital flight.KEY POINTS:1. To analyze the macroeconomics of open economies, two markets are central―the market forloanable funds and the market for foreign-currency exchange. In the market for loanable funds, the interest rate adjusts to balance the supply of loanable funds (from national saving) and the demand for loanable funds (from domestic investment and net foreign investment). In the market for foreign-currency exchange, the real exchange rate adjusts to balance the supply of dollars (for net foreign investment) and the demand for dollars (for net exports). Because net foreign investment is part of the demand for loanable funds and provides the supply of dollars for foreign-currency exchange, it is the variable that connects these two markets.2. A policy that reduces national saving, such as a government budget deficit, reduces thesupply of loanable funds and drives up the interest rate. The higher interest rate reduces net foreign investment, which reduces the supply of dollars in the market for foreign-currency exchange. The dollar appreciates, and net exports fall.3. Although restrictive trade policies, such as a tariff or quota on imports, are sometimesadvocated as a way to alter the trade balance, they do not necessarily have that effect. AA MACROECONOMIC THEORY OF THE OPENECONOMYtrade restriction increases net exports for a given exchange rate and, therefore, increases the demand for dollars in the market for foreign-currency exchange. As a result, the dollar appreciates in value, making domestic goods more expensive relative to foreign goods. This appreciation offsets the initial impact of the trade restriction on net exports.4.When investors change their attitudes about holding assets of a country, the ramifications forthe country’s economy can be profound. In particular, political instability can lead to capital flight, which tends to increase interest rates and cause the currency to depreciate.CHAPTER OUTLINE:I. Supply and Demand for Loanable Funds and for Foreign-Currency ExchangeA. The Market for Loanable Funds1. Whenever a nation saves a dollar of income, it can use that dollar tofinance the purchase of domestic capital or to finance the purchase of anasset abroad.2. The supply of loanable funds comes from national saving.3. The demand for loanable funds comes from domestic investment andnet foreign investment.4. The quantity of loanable funds demanded and the quantity of loanablefunds supplied depend on the real interest rate.a. A higher real interest rate encourages people to save and thusraises the quantity of loanable funds supplied.b. A higher interest rate makes borrowing to finance capitalprojects more costly, discouraging investment and lowering thequantity of loanable funds demanded.c. A higher real interest rate in a country will also lower net foreigninvestment. All else equal, a higher domestic interest rateimplies that purchases of foreign assets by domestic residentswill fall and purchases of domestic assets by foreigners will rise.5. The supply and demand for loanable funds can be shown graphically.a. The real interest rate is the price of borrowing funds and istherefore on the vertical axis; the quantity of loanable funds ison the horizontal axis.b. The supply of loanable funds is upward-sloping because of thepositive relationship between the real interest rate and thequantity of loanable funds supplied.c. The demand for loanable funds is downward-sloping because ofthe inverse relationship between the real interest rate and thequantity of loanable funds demanded.6. The interest rate adjusts to bring the supply and demand for loanablefunds into balance.a. If the interest rate was below r*, the quantity of loanable fundsdemanded would be greater than the quantity of loanable fundssupplied. This would lead to upward pressure on the interestrate.b. If the interest rate was above r*, the quantity of loanable fundsdemanded would be less than the quantity of loanable fundssupplied. This would lead to downward pressure on the interestrate.7.At the equilibrium interest rate, the amount that people want to save isexactly equal to the desired quantities of domestic investment and netforeign investment.B. The Market for Foreign-Currency Exchange1. The imbalance between the purchase and sale of capital assets abroadmust be equal to the imbalance between exports and imports of goodsand services.2. Net foreign investment represents the quantity of dollars supplied for thepurpose of buying assets abroad.3. Net exports represent the quantity of dollars demanded for the purposeof buying U.S. net exports of goods and services.4. The real exchange rate is the price that balances the supply and demandin the market for foreign-currency exchange.a. When the U.S. real exchange rate appreciates, U.S. goodsbecome more expensive relative to foreign goods, lowering U.S.exports and raising imports. Thus, an increase in the realexchange rate will reduce the quantity of dollars demanded.b. The key determinant of net foreign investment is the realinterest rate. Thus, as the real exchange rate changes, therewill be no change in net foreign investment.5. We can show the market for foreign-currency exchange graphically.a. The real exchange rate is on the vertical axis; the quantity ofdollars exchanged is on the horizontal axis.b. The demand for dollars will be downward-sloping because of theinverse relationship between the real exchange rate and thequantity of dollars demanded.c. The supply of dollars will be a vertical line because of the factthat changes in the real exchange rate have no influence on thequantity of dollars supplied.6. The real exchange rate adjusts to balance the supply and demand fordollars.a. If the real exchange rate was lower than real e*, the quantity ofdollars demanded would be greater than the quantity of dollarssupplied and there would be upward pressure on the realexchange rate.b. If the real exchange rate was higher than real e*, the quantityof dollars demanded would be less than the quantity of dollarssupplied and there would be downward pressure on the realexchange rate.7. At the equilibrium real exchange rate, the demand for dollars to buy netexports exactly balances the supply of dollars to be exchanged intoforeign currency to buy assets abroad.C. FYI: Purchasing-Power Parity as a Special Case1. Purchasing-power parity suggests that a dollar must buy the samequantity of goods and services in every country. As a result, the realexchange rate is fixed and the nominal exchange rate is determined bythe price levels in the two countries.2. Purchasing-power parity assumes that international trade respondsquickly to international price differences.a. If goods were cheaper in one country than another, they wouldbe exported from the country where they are cheaper andimported into the second country where the prices are higher.b. This would continue until the price differential disappears.c. Because net exports are so responsive to small changes in thereal exchange rate, purchasing-power parity implies that thedemand for dollars would be horizontal. Thus, purchasing-power parity is simply a special case of the model of the foreign-currency exchange market.d. However, it is more realistic to draw the demand curvedownward-sloping.II. Equilibrium in the Open EconomyA. Net Foreign Investment: the Link between the Two Markets1. In the market for loanable funds, net foreign investment is a part of thedemand.2. In the foreign-currency exchange market, net foreign investment is thesupply of dollars.3. This means that net foreign investment is the variable that links the twomarkets.4. The key determinant of net foreign investment is the real interest rate.5.We can show the relationship between net foreign investment and the real interest rate graphically. a.When the real interest rate is high, owning domestic assets is more attractive and thus, net foreign investment is low.b. This inverse relationship implies that net foreign investment will be downward-sloping.c.Note that net foreign investment can be positive or negative.1. The real interest rate is determined in the market for loanable funds.2. This real interest rate determines the level of net foreign investment.3. Because net foreign investment must be paid for with foreign currency, the quantity of net foreign investment determines the supply of dollars.4.The equilibrium real exchange rate brings into balance the quantity of dollars supplied and the quantity of dollars demanded.5.Thus, the real interest rate and the real exchange rate adjustsimultaneously to balance supply and demand in the two markets. As they do so, they determine the levels of national saving, domestic investment, net foreign investment, and net exports.III. How Policies and Events Affect an Open EconomyA.Government Budget Deficits 1.A government budget deficit occurs when the government spending2. Because a government deficit represents negative public saving, itlowers national saving. This leads to a decline in the supply of loanablefunds.3. The real interest rate rises, leading to a decline in both domesticinvestment and net foreign investment.4. Because net foreign investment falls, people need less foreign currencyto buy foreign assets so the supply of dollars declines.5. The real exchange rate rises, making U.S. goods more expensive relativeto foreign goods. Exports will fall, imports will rise, and net exports willfall.6. In an open economy, government budget deficits raise real interest rates,crowd out domestic investment, cause the dollar to appreciate, and pushthe trade balance toward deficit.7. Because they are so closely related, the budget deficit and the tradedeficit are often called the twin deficits. Note that, because many otherfactors affect the trade deficit, these “twins” are not identical.1. Definition of Trade Policy: a government policy that directlyinfluences the quantity of goods and services that a countryimports or exports.2. Two common types of trade policies are tariffs (taxes on imported goods)and quotas (limits on the quantity of imported goods).3. Example: the U.S. government imposes a quota on the number of carsimported from Japan.4. Note that the quota will have no effect on the market for loanable funds.Thus, the real interest rate will be unaffected.5. The quota will lower imports and thus increase net exports. Since netexports are the source of demand for dollars in the market for foreign-currency exchange, the demand for dollars will increase.6. The real exchange rate will rise making U.S. goods relatively moreexpensive than foreign goods. Exports will fall, imports will rise, andnet exports will fall.7. In the end, the quota reduces both imports and exports but net exportsremain the same.9. Recall that NX = NFI. Also remember that S = I + NFI.Rewriting, we get:NFI = S – I.Substituting for NFI, we get:NX = S – I.10. Since trade policies do not affect national saving or domestic investment,they cannot affect net exports.11. Trade policies do have effects on firms, industries, and countries. Butthese effects are more microeconomic than macroeconomic.C. Political Instability and Capital Flight1. Definition of Capital Flight: a large and sudden reduction in thedemand for assets located in a country.2. Capital flight often occurs because investors feel that the country isunstable, due to either economic or political problems.3.Example: Investors around the world observe political problems in Mexico and begin selling Mexican assets and buying U.S. assets.4. Mexican net foreign investment will rise because investors are selling Mexican assets and purchasing assets from another country.a. Since net foreign investment determines the supply of pesos, the supply of pesos increases.b.Since net foreign investment is also a part of the demand for loanable funds, the demand for loanable funds rises.5.The increased demand for loanable funds causes the equilibrium real interest rate to rise.6. The increased supply of pesos lowers the equilibrium real exchange rate.7.Thus, capital flight from Mexico increases Mexican interest rates and lowers the value of the Mexican peso in the market for foreign-currency exchange.8.Capital flight in Mexico will also affect other countries. If the capital flows out of Mexico and into the United States, it has the opposite effect on the U.S. economy.9.In 1997, several Asian countries experienced capital flight. The same thing occurred in Russia in 1998.D. In the News: How the Chinese Help American Home Buyers1. China is using funds from its large trade surpluses to purchase U.S. securities.2.This is an article from The Wall Street Journal covering the effects of this influx of capital on U.S. interest rates.ADJUNCT TEACHING TIPS AND WARM-UP ACTIVITIES:1. Encourage students to bring their books to class so that they can look at the graphs up closewhile redrawing them in their notes. This will help them to understand the model panel by panel.SOLUTIONS TO TEXT PROBLEMS:Quick Quizzes 1. The supply of loanable funds comes from national saving. The demand for loanablefunds comes from domestic investment and net foreign investment. Supply in the market for foreign-currency exchange comes from net foreign investment. Demand in the market for foreign-currency exchange comes from net exports.2. The two markets in the model of the open economy are the market for loanable fundsand the market for foreign-currency exchange. These markets determine two relative prices: (1) the market for loanable funds determines the real interest rate; and (2) the market for foreign-currency exchange determines the real exchange rate.3. If Americans decided to spend a smaller fraction of their incomes, the increase in savingwould shift the supply curve for loanable funds to the right, as shown in Figure 30-1.ALTERNATIVE CLASSROOM EXAMPLE:Suppose that investors feel very confident about the prospects for investment in Brazilian assets.In this case (from the perspective of Brazil):1. The demand for loanable funds will shift left because NFI decreases.2. The NFI curve will also shift left.3. The real interest rate in Brazil will fall.4. The supply of Reals (the “Real” is the currency of Brazil) will shift left.5. The real exchange rate will rise.6. Brazilian net exports will fall.The decline in the real interest rate increases net foreign investment and shifts thesupply of dollars to the right in the market for foreign-currency exchange. The result isa decline in the real exchange rate. Since the real interest rate is lower, domesticinvestment increases. Since net foreign investment increases, the trade balance alsoincreases. Overall, saving and domestic investment increase, the real interest rate and real exchange rate decrease, and the trade balance increases.Figure 30-1Questions for Review1. The supply of loanable funds comes from national saving; the demand for loanable fundscomes from domestic investment and net foreign investment. The supply of dollars inthe market for foreign exchange comes from net foreign investment; the demand fordollars in the market for foreign exchange comes from net exports. The link betweenthe two markets is net foreign investment.2. Government budget deficits and trade deficits are sometimes called the twin deficitsbecause a government budget deficit often leads to a trade deficit. The governmentbudget deficit leads to reduced national saving, causing the interest rate to increase,thus reducing net foreign investment, which in turn reduces net exports.3. If a union of textile workers encourages people to buy only American-made clothes,imports would be reduced, so net exports would increase for any given real exchangerate. This would cause the demand curve in the market for foreign exchange to shift to the right, as shown in Figure 30-2. The result is a rise in the real exchange rate, but no effect 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.Figure 30-24. Capital flight is a large and sudden movement of funds out of a country. Capital flightcauses the interest rate to increase and the exchange rate to depreciate.Problems and Applications1. Japan generally runs a trade surplus because the Japanese saving rate is high relative toJapanese domestic investment. The result is high net foreign investment, which ismatched by high net exports, resulting in a trade surplus. The other possibilities (high foreign demand for Japanese goods, low Japanese demand for foreign goods, andstructural barriers against imports into Japan) would affect the real exchange rate, butnot the trade surplus.2. A reduction in the U.S. government budget deficit would increase national saving,shifting the supply curve of loanable funds to the right in Figure 30-3. This wouldreduce the real interest rate in the United States, thus increasing net foreign investment, and reducing the real exchange rate. Thus the real value of the dollar would decline,not increase as the President suggested.Figure 30-33. If Congress passes an investment tax credit, it subsidizes domestic investment. Thedesire to increase domestic investment leads firms to borrow more, increasing thedemand for loanable funds, as shown in Figure 30-4. This raises the real interest rate,thus reducing net foreign investment. The decline in net foreign investment reduces the supply of dollars in the market for foreign exchange, raising the real exchange rate.The trade balance also declines, since net foreign investment, hence net exports, arelower. The higher real interest rate also increases the quantity of national saving. Insummary, saving increases, domestic investment increases, net foreign investmentdeclines, the real interest rate increases, the real exchange rate increases, and the trade balance decreases.Figure 30-44. a. A decline in the quality of U.S. goods at a given real exchange rate would reducenet exports, reducing the demand for dollars, thus shifting the demand curve fordollars to the left in the market for foreign exchange, as shown in Figure 30-5.b. The shift to the left of the demand curve for dollars leads to a decline in the realexchange rate. Since net foreign investment is unchanged, and net exportsequals net foreign investment, there is no change in equilibrium in net exports orthe trade balance.c. The claim in the popular press is incorrect. A change in the quality of U.S.goods cannot lead to a rise in the trade deficit. The decline in the realexchange rate means that we get fewer foreign goods in exchange for our goods,so our standard of living may decline.Figure 30-55. A reduction in restrictions of imports would reduce net exports at any given realexchange rate, thus shifting the demand curve for dollars to the left. The shift of thedemand curve for dollars leads to a decline in the real exchange rate, which increasesnet exports. Since net foreign investment is unchanged, and net exports equals netforeign investment, there is no change in equilibrium in net exports or the trade balance.But both imports and exports rise, so export industries benefit.6. a. When the French develop a strong taste for California wines, the demand fordollars in the foreign-currency market increases at any given real exchange rate,as shown in Figure 30-6.Figure 30-6b. The result of the increased demand for dollars is a rise in the real exchange rate.c. The quantity of net exports is unchanged.7. An export subsidy increases net exports at any given real exchange rate. This causesthe demand for dollars to shift to the right in the market for foreign exchange, as shown in Figure 30-7. The effect is a higher real exchange rate, but no change in net exports.So the senator is wrong; an export subsidy will not reduce the trade deficit.Figure 30-78. Higher real interest rates in Europe lead to increased U.S. net foreign investment.Higher net foreign investment leads to higher net exports, since in equilibrium netexports equal net foreign investment (NX=NFI). Figure 30-8 shows that the increase in net foreign investment leads to a lower real exchange rate, higher real interest rate, andincreased net exports.Figure 30-89. a. If the elasticity of U.S. net foreign investment with respect to the real interestrate is very high, the lower real interest rate that occurs because of the increasein private saving will increase net foreign investment a lot, so U.S. domesticinvestment won't increase much.b. Since an increase in private saving reduces the real interest rate, inducing anincrease in net foreign investment, the real exchange rate will decline. If theelasticity of U.S. exports with respect to the real exchange rate is very low, it willtake a large decline in the real exchange rate to increase U.S. net exports byenough to match the increase in net foreign investment.10. a. If the Japanese decided they no longer wanted to buy U.S. assets, U.S. netforeign investment would increase, increasing the demand for loanable funds, asshown in Figure 30-9. The result is a rise in U.S. interest rates, an increase inthe quantity of U.S. saving (because of the higher interest rate), and lower U.S.domestic investment.Figure 30-9b. In the market for foreign exchange, the real exchange rate declines and thebalance of trade increases.11. The flight to safety led to a desire by foreigners to buy U.S. government bonds, resultingin a decline in U.S. net foreign investment, as shown in Figure 30-10. The decline in net foreign investment also means a decline in the demand for loanable funds. As thefigure shows, the shift to the left in the demand curve results in a decline in the realinterest rate in the United States. In addition, the decrease in net foreign investmentdecreases the supply of dollars in the foreign-exchange market, causing the dollar toappreciate, shown as a rise in the real exchange rate. The lower real interest ratecauses national saving to decline, but increases domestic investment. Since net foreigninvestment is lower, net exports are lower, thus the trade balance declines.Figure 30-1012. a. When U.S. mutual funds become more interested in investing in Canada,Canadian net foreign investment declines as the U.S. mutual funds makeportfolio investments in Canadian stocks and bonds. The demand for loanablefunds shifts to the left and the net foreign investment curve shifts to the left, asshown in Figure 30-11. As the figure shows, the real interest rate declines, thusreducing Canada’s private saving, but increasing Canada’s domestic investment.In equilibrium, Canadian net foreign investment declines.b. Since Canada's domestic investment increases, in the long run, Canada's capitalstock will increase.c. With a higher capital stock, Canadian workers will be more productive (the valueof their marginal product will increase) so wages will rise. Thus Canadianworkers will be better off.d. The shift of investment into Canada means increased U.S. net foreign investment.As a result, the U.S. real interest rises, leading to less domestic investment,which in the long run reduces the U.S. capital stock, lowers the value of marginalproduct of U.S. workers, and therefore decreases the wages of U.S. workers.The impact on U.S. citizens would be different from the impact on U.S. workersbecause some U.S. citizens own capital that now earns a higher real interest rate.Figure 30-11。
曼昆_微观经济学第五版课后习题答案[1]
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曼昆《经济学原理》 （第五版）习题解答 第一篇
第一章
导
言
经济学十大原理
复习题 1．列举三个你在生活中面临的重要权衡取舍的例子。 答：①大学毕业后，面临着是否继续深造的选择，选择继续上学攻读研究生学位，就意味着在今后三年中放 弃参加工作、赚工资和积累社会经验的机会；②在学习内容上也面临着很重要的权衡取舍，如果学习《经济学》 ， 就要减少学习英语或其他专业课的时间；③对于不多的生活费的分配同样面临权衡取舍，要多买书，就要减少在 吃饭、买衣服等其他方面的开支。 2．看一场电影的机会成本是什么? 答：看一场电影的机会成本是在看电影的时间里做其他事情所能获得的最大收益，例如：看书、打零工。 3．水是生活必需的。一杯水的边际利益是大还是小呢? 答：这要看这杯水是在什么样的情况下喝，如果这是一个人五分钟内喝下的第五杯水，那么他的边际利益很 小，有可能为负；如果这是一个极度干渴的人喝下的第一杯水，那么他的边际利益将会极大。 4．为什么决策者应该考虑激励? 答：因为人们会对激励做出反应，而政策会影响激励。如果政策改变了激励，它将使人们改变自己的行为， 当决策者未能考虑到行为如何由于政策的原因而变化时，他们的政策往往会产生意想不到的效果。 5．为什么各国之间的贸易不像一场比赛一样有赢家和输家呢? 答：因为贸易使各国可以专门从事自己最擅长的活动，并从中享有更多的各种各样的物品与劳务。通过贸易 使每个国家可供消费的物质财富增加，经济状况变得更好。因此，各个贸易国之间既是竞争对手，又是经济合作 伙伴。在公平的贸易中是“双赢”或者“多赢”的结果。 6．市场中的那只“看不见的手”在做什么呢? 答：市场中那只“看不见的手”就是商品价格，价格反映商品自身的价值和社会成本，市场中的企业和家庭 在作出买卖决策时都要关注价格。因此，他们也会不自觉地考虑自己行为的(社会)收益和成本。从而，这只“看 不见的手”指引着千百万个体决策者在大多数情况下使社会福利趋向最大化。 7．解释市场失灵的两个主要原因，并各举出一个例子。 答：市场失灵的主要原因是外部性和市场势力。 外部性是一个人的行为对旁观者福利的影响。当一个人不完全承担(或享受)他的行为所造成的成本(或收益) 时，就会产生外部性。举例：如果一个人不承担他在公共场所吸烟的全部成本，他就会毫无顾忌地吸烟。在这种 情况下，政府可以通过制定禁止在公共场所吸烟的规章制度来增加经济福利。 市场势力是指一个人(或一小群人)不适当地影响市场价格的能力。例如：某种商品的垄断生产者由于几乎不 受市场竞争的影响，可以向消费者收取过高的垄断价格。在这种情况下，规定垄断者收取的价格有可能提高经济 效率。 8．为什么生产率是重要的? 答：因为一国的生活水平取决于它生产物品与劳务的能力，而对这种能力的最重要的衡量度就是生产率。生 产率越高，一国生产的物品与劳务量就越多。 9．什么是通货膨胀，什么引起了通货膨胀? 答：通货膨胀是流通中货币量的增加而造成的货币贬值，由此产生经济生活中价格总水平上升。货币量增长 引起了通货膨胀。 10．短期中通货膨胀与失业如何相关? 答：短期中通货膨胀与失业之间存在着权衡取舍，这是由于某些价格调整缓慢造成的。政府为了抑制通货膨 胀会减少流通中的货币量，人们可用于支出的货币数量减少了，但是商品价格在短期内是粘性的，仍居高不下， 于是社会消费的商品和劳务量减少，消费量减少又引起企业解雇工人。在短期内，对通货膨胀的抑制增加了失业 量。 问题与应用 1．描写下列每种情况所面临的权衡取舍：
曼昆经济学原理微观第五版测试题库【整理版】.doc
曼昆经济学原理微观第五版测试题库【整理版】Chapter 14Firms in Competitive MarketsTRUE/FALSE1. For a firm operating in a perfectly competitive industry, total revenue, marginal revenue, and average revenue are all equal.ANS: F DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Average revenue | Marginal revenueMSC: Interpretive2. For a firm operating in a perfectly competitive industry, marginal revenue and average revenue are equal.ANS: T DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Average revenue | Marginal revenueMSC: Interpretive3. If a firm notices that its average revenue equals the current market price, that firm must be participating in a competitive market.ANS: F DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Average revenueMSC: Interpretive4. A profit-maximizing firm in a competitive market will increase production when average revenue exceeds marginal cost.ANS: T DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Average revenueMSC: Interpretive9295. Because there are many buyers and sellers in a perfectly competitive market, no one seller can influence the market price.ANS: T DIF: 1 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Definitional6. Firms operating in perfectly competitive markets try to maximize profits.ANS: T DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Applicative7. In competitive markets, firms that raise their prices are typically rewarded with larger profits.ANS: F DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive8. When an individual firm in a competitive market increases its production, it is likely that the market price will fall.ANS: F DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive9. In a competitive market, firms are unable to differentiate their product from that of other producers.ANS: T DIF: 1 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive10. Firms in a competitive market are said to be price takers because there are many sellers in the market and the goods offered by the firms are very similar if not identical.ANS: T DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive11. A firm's incentive to compare marginal revenue and marginal cost is an application of the principle that rational people think at the margin. ANS: T DIF: 1 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Interpretive12. By comparing the marginal revenue and marginal cost from each unit produced, a firm in a competitive market can determine theprofit-maximizing level of production.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Interpretive13. Firms operating in perfectly competitive markets produce an output level where marginal revenue equals marginal cost.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Marginal revenueMSC: Applicative14. A firm is currently producing 100 units of output per day. The manager reports to the owner that producing the 100th unit costs the firm $5. The firm can sell the 100th unit for $4.75. The firm should continue to produce 100 units in order to maximize its profits (or minimize its losses).ANS: F DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Analytical15. A firm is currently producing 100 units of output per day. The manager reports to the owner that producing the 100th unit costs the firm $5. The firm can sell the 100th unit for $5. The firm should continue to produce 100 units in order to maximize its profits (or minimize its losses).ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Analytical16. A firm is currently producing 100 units of output per day. The manager reports to the owner that producing the 100th unit costs the firm $5. The firm can sell the unit for $6. The firm should produce more than 100 units in order to maximize its profits (or minimize its losses). ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Analytical17. A dairy farmer must be able to calculate sunk costs in order to determine how much revenue the farm receives for the typical gallon of milk.ANS: F DIF: 1 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Sunk costs MSC: Interpretive18. Because nothing can be done about sunk costs, they are irrelevant to decisions about business strategy.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Sunk costs MSC: Interpretive19. A miniature golf course is a good example of where fixed costs become relevant to the decision of when to open and when to close for the season.ANS: F DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Sunk costs MSC: Interpretive20. A popular resort restaurant will maximize profits if it chooses to stay open during the less-crowded “off season” when its total revenues exceed its variable costs.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Sunk costs MSC: Interpretive21. All firms maximize profits by producing an output level where marginal revenue equals marginal cost; for firms operating in perfectly competitive industries, maximizing profits also means producing an output level where price equals marginal cost.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Interpretive22. A firm operating in a perfectly competitive industry will continue to operate in the short run but earn losses if the market price is less than that firm’s average total cost but greater than the firm’s average variable cost.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Supply curveMSC: Interpretive23. A firm operating in a perfectly competitive industry will continue to operate in the short run but earn losses if the market price is less than that fir m’s average variable cost.ANS: F DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Supply curveMSC: Interpretive24. A firm operating in a perfectly competitive industry will shut down in the short run but earn losses if the market price is less than that firm’s average variable cost.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Supply curveMSC: Interpretive25. In the short run, a firm should exit the industry if its marginal cost exceeds its marginal revenue.ANS: F DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Supply curveMSC: Interpretive26. In making a short-run profit-maximizing production decision, the firm must consider both fixed and variable cost.ANS: F DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Interpretive27. A firm will shut down in the short run if revenue is not sufficient to cover its variable costs of production.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Shut down MSC: Interpretive28. Suppose a firm is considering producing zero units of output. We call this shutting down in the short run and exiting an industry in the long run.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Shut down MSC: Interpretive29. Suppose a firm is considering producing zero units of output. We call this exiting an industry in the short run and shutting down in the long run.ANS: F DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Shut down MSC: Interpretive30. A firm will shut down in the short run if revenue is not sufficient to cover all of its fixed costs of production.ANS: F DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Shut down MSC: Interpretive31. The supply curve of a firm in a competitive market is the average variable cost curve above the minimum of marginal cost.ANS: F DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Supply curveMSC: Interpretive32. When a profit-maximizing firm in a competitive market experiences rising prices, it will respond with an increase in production.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Interpretive33. The marginal firm in a competitive market will earn zero economic profit in the long run.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Economic profitMSC: Interpretive34. A profit-maximizing firm in a competitive market will earn zero accounting profits in the long run.ANS: F DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Accounting profitMSC: Interpretive35. In the long run, when price is less than average total cost for all possible levels of production, a firm in a competitive market will choose to exit (or not enter) the market.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Interpretive36. In the long run, when price is greater than average total cost, some firms in a competitive market will choose to enter the market.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Interpretive37. In the long run, a firm should exit the industry if its total costs exceed its total revenues.ANS: T DIF: 2 REF: 14-2 NAT: AnalyticLOC: Perfect competition TOP: Profit maximizationMSC: Interpretive38. When a resource used in the production of a good sold in a competitive market is available in only limited quantities, the long-run supply curve is likely to be upward sloping.ANS: T DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Supply curveMSC: Interpretive39. A firm operating in a perfectly competitive industry will continue to operate if it earns zero economic profits because it is likely to be earning positive accounting profits.ANS: T DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive40. A firm operating in a perfectly competitive industry will shut down in the short run if its economic profits fall to zero because it is likely to be earning negative accounting profits.ANS: F DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive41. A firm operating in a perfectly competitive market may earn positive, negative, or zero economic profit in the long run.ANS: F DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Long-run supply curveMSC: Interpretive42. A firm operating in a perfectly competitive market may earn positive, negative, or zero economic profit in the short run.ANS: T DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Long-run supply curveMSC: Interpretive43. A firm operating in a perfectly competitive market earns zero economic profit in the long run but remains in business because the firm’s revenues cover the business owners’ opportunity costs.ANS: T DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Zero-profit conditionMSC: Interpretive44. A competitive market will typically experience entry and exit until accounting profits are zero.ANS: F DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Zero-profit conditionMSC: Interpretive45. The long-run equilibrium in a competitive market characterized by firms with identical costs is generally characterized by firms operating at efficient scale.ANS: T DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Zero-profit conditionMSC: Interpretive46. In the long run, a competitive market with 1,000 identical firms will experience an equilibrium price equal to the minimum of each firm's average total cost.ANS: T DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Zero-profit conditionMSC: Interpretive47. In a long-run equilibrium where firms have identical costs, it is possible that some firms in a competitive market are making a positive economic profit.ANS: F DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Zero-profit conditionMSC: Interpretive48. When economic profits are zero in equilibrium, the firm's revenue must be sufficient to cover all opportunity costs.ANS: T DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Zero-profit conditionMSC: Interpretive49. The short-run supply curve in a competitive market must be more elastic than the long-run supply curve.ANS: F DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Supply curveMSC: Interpretive50. The long-run supply curve in a competitive market is more elastic than the short-run supply curve.ANS: T DIF: 2 REF: 14-3 NAT: AnalyticLOC: Perfect competition TOP: Supply curveMSC: InterpretiveSHORT ANSWER1. Describe the difference between average revenue and marginal revenue. Why are both of these revenue measures important to aprofit-maximizing firm?ANS:Average revenue is total revenue divided by the quantity of output. Marginal revenue is the change in total revenue from the sale of each additional unit of output. Marginal revenue is used to determine the profit-maximizing level of production, and average revenue is used to help determine the level of profits. Note that for all firms, price equals average revenue because AR=(PxQ)/Q=P. But only for a firm operating in a perfectly competitive industry does price also equal marginal revenue.DIF: 2 REF: 14-1 NAT: Analytic LOC: Perfect competitionTOP: Price MSC: Definitional2. List and describe the characteristics of a perfectly competitive market.ANS:There are many buyers and sellers in the market. The goods offered by the various sellers are largely the same. Firms can freely enter or exit the market.DIF: 2 REF: 14-1 NAT: Analytic LOC: Perfect competitionTOP: Competitive markets MSC: Definitional3. Why would a firm in a perfectly competitive market always choose to set its price equal to the current market price? If a firm set its price below the current market price, what effect would this have on the market?ANS:The firm could not sell any more of its product at a lower price than it could sell at the market price. As a result, it would needlessly forgo revenue if it set a price below the market price. If the firm set a higher price, it would not sell anything at all because a competitive market has many sellers who would supply the product at the market price.DIF: 2 REF: 14-1 NAT: Analytic LOC: Perfect competitionTOP: Profit maximization MSC: Analytical4. Use a graph to demonstrate the circumstances that would prevail ina competitive market where firms are earning economic profits. Can this scenario be maintained in the long run? Explain your answer.ANS:In a competitive market where firms are earning economic profits, new firms will have an incentive to enter the market. This entry will expand the number of firms, increase the quantity of the good supplied, and drive down prices and profits. Entry will cease once firms are producing the output level where price equals the minimum of the average total costcurve, meaning that each firm earns zero economic profits in the long run.DIF: 2 REF: 14-2 NAT: Analytic LOC: Perfect competitionTOP: Profit maximization MSC: Analytical5. Explain how a firm in a competitive market identifies theprofit-maximizing level of production. When should the firm raise production, and when should the firm lower production?ANS:The firm selects the level of output at which marginal revenue is equal to marginal cost. If MR > MC, profit will increase if the firm increases Q. If MR < MC, profit will increase if the firm decreases Q.DIF: 2 REF: 14-2 NAT: Analytic LOC: Perfect competitionTOP: Profit maximization MSC: Analytical6. News reports from the western United States occasionally report incidents of cattle ranchers slaughtering a large number of newborn calves and burying them in mass graves rather than transporting them to markets. Assuming that this is rational behavior by profit-maximizing "firms," explain what economic factors may influence such behavior. ANS:If the selling price is not sufficient to cover the variable cost of sending the calves to market, this (potentially emotionally upsetting) behavior makes economic sense.DIF: 2 REF: 14-2 NAT: Analytic LOC: Perfect competitionTOP: Profit maximization MSC: Analytical7. Use a graph to demonstrate the circumstances that would prevail ina perfectly competitive market where firms are experiencing economic losses. Identify costs, revenue, and the economic losses on your graph. Using your graph, determine whether an individual firm will shut down in the short run, or choose to remain in the market. Explain your answer.ANS:The losses and revenues are identified on the individual firm's graph. Total cost is equal to the sum of the losses and revenue (becauseprofit/loss=TR-TC, so TC=TR+profit/loss). The decision about whether this firm shuts down or remains in the market depends upon the position of average variable cost. If average variable cost is below P0 at output level Q0, the firm will remain in the market. If average variable cost is above P0 at output level Q0 the firm will shut down in the short run.DIF: 2 REF: 14-2 NAT: Analytic LOC: Perfect competitionTOP: Profit maximization MSC: Analytical8. At its current level of production a profit-maximizing firm in a competitive market receives $12.50 for each unit it produces and faces an average total cost of $10. At the market price of $12.50 per unit, the firm'smarginal cost curve crosses the marginal revenue curve at an output level of 1,000 units. What is the firm's current profit? What is likely to occur in this market and why?ANS:$2,500; firms are likely to enter this market since existing firms are earning economic profits.DIF: 2 REF: 14-2 NAT: Analytic LOC: Perfect competitionTOP: Profit MSC: Analytical9. Give two reasons why the long-run industry supply curve may slope upward. Use an example to demonstrate your reasons.ANS:1) Some resource used in production may be available only in limited quantities. 2) Firms may have different cost structures. The example provided in the text for the first reason is the market for farm products. As more people become farmers, the price of land is bid up since its supply is limited. As the price of farm land is bid up, the costs to all farmers in the market rise. The example used to support the second reason is the market for painters. Anyone can enter the market for painting services, but not everyone has the same costs because some painters work faster than others.DIF: 3 REF: 14-3 NAT: Analytic LOC: Perfect competitionTOP: Supply curve MSC: Interpretive10. If identical firms that remain in a competitive market over the long run make zero economic profit, why do these firms choose to remain in the market?ANS:Because a normal rate of return on their investment is included as part of the opportunity cost of production.DIF: 2 REF: 14-3 NAT: Analytic LOC: Perfect competitionTOP: Economic profit MSC: InterpretiveSec00 - Firms in Competitive MarketsMULTIPLE CHOICE1. A firm has market power if it cana. maximize profits.b. minimize costs.c. influence the market price of the good it sells.d. hire as many workers as it needs at the prevailing wage rate.ANS: C DIF: 1 REF: 14-0 NAT: AnalyticLOC: Perfect competition TOP: Market powerMSC: Definitional2. The analysis of competitive firms sheds light on the decisions that lie behind thea. demand curve.b. supply curve.c. way firms make pricing decisions in the not-for-profit sector ofthe economy.d. way financial markets set interest rates.ANS: B DIF: 1 REF: 14-0 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketMSC: Interpretive3. For any competitive market, the supply curve is closely related to thea. preferences of consumers who purchase products in thatmarket.b. income tax rates of consumers in that market.c. firms’ costs of production in that market.d. interest rates on government bonds.ANS: C DIF: 1 REF: 14-0 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketMSC: Interpretive4. Suppose that firms in each of the two markets listed below were to increase their prices by 20 percent. Which pair represents the example where customers would decrease their quantity purchased dramatically in one market and only slightly in the other market due to differences in market structure?a. corn and soybeansb. gasoline and restaurantsc. water and cable televisiond. spiral notebooks and college textbooksANS: D DIF: 2 REF: 14-0 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketMSC: InterpretiveSec01 - Firms in Competitive Markets - What is a Competitive Market? MULTIPLE CHOICE1. A key characteristic of a competitive market is thata. government antitrust laws regulate competition.b. producers sell nearly identical products.c. firms minimize total costs.d. firms have price setting power.ANS: B DIF: 1 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Definitional2. Which of the following is not a characteristic of a competitive market?a. Buyers and sellers are price takers.b. Each firm sells a virtually identical product.c. Free entry is limited.d. Each firm chooses an output level that maximizes profits.ANS: C DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Definitional3. In a perfectly competitive market,a. no one seller can influence the price of the product.b. price exceeds marginal revenue for each unit sold.c. average revenue exceeds marginal revenue for each unit sold.d. administrative barriers can make it difficult for firms to enter anindustry.ANS: A DIF: 1 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive4. Who is a price taker in a competitive market?a. buyers onlyb. sellers onlyc. both buyers and sellersd. neither buyers nor sellersANS: C DIF: 1 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Definitional5. Competitive markets are characterized bya. a small number of buyers and sellers.b. unique products.c. the interdependence of firms.d. free entry and exit by firms.ANS: D DIF: 1 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Definitional6. A market is competitive if(i) firms have the flexibility to price their own product.(ii) each buyer is small compared to the market.(iii) each seller is small compared to the market.a. (i) and (ii) onlyb. (i) and (iii) onlyc. (ii) and (iii) onlyd. (i), (ii), and (iii)ANS: C DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive7. When a firm has little ability to influence market prices it is said to be in aa. competitive market.b. strategic market.c. thin market.d. power market.ANS: A DIF: 1 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Definitional8. In a competitive market, the actions of any single buyer or seller willa. have a negligible impact on the market price.b. have little effect on market equilibrium quantity but will affectmarket equilibrium price.c. affect marginal revenue and average revenue but not price.d. adversely affect the profitability of more than one firm in themarket.ANS: A DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive9. Because the goods offered for sale in a competitive market are largely the same,a. there will be few sellers in the market.b. there will be few buyers in the market.c. only a few buyers will have market power.d. sellers will have little reason to charge less than the goingmarket price.ANS: D DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive10. Which of the following is not a characteristic of a perfectly competitive market?a. Firms are price takers.b. Firms have difficulty entering the market.c. There are many sellers in the market.d. Goods offered for sale are largely the same.ANS: B DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive markets11. Which of the following is not a characteristic of a perfectly competitive market?a. Firms are price takers.b. Firms can freely enter the market.c. Many firms have market power.d. Goods offered for sale are largely the same.ANS: C DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive markets MSC: Interpretive12. Free entry means thata. the government pays any entry costs for individual firms.b. no legal barriers prevent a firm from entering an industry.c. a firm's marginal cost is zero.d. a firm has no fixed costs in the short run.ANS: B DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive markets MSC: Interpretive13. Which of the following industries is most likely to exhibit the characteristic of free entry?a. nuclear powerb. municipal water and sewerc. dairy farmingd. airport securityANS: C DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive markets14. When buyers in a competitive market take the selling price as given, they are said to bea. market entrants.b. monopolists.c. free riders.d. price takers.ANS: D DIF: 1 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Definitional15. When firms are said to be price takers, it implies that if a firm raises its price,a. buyers will go elsewhere.b. buyers will pay the higher price in the short run.c. competitors will also raise their prices.d. firms in the industry will exercise market power.ANS: A DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive16. Which of the following statements best reflects a price-taking firm?a. If the firm were to charge more than the going price, it wouldsell none of its goods.b. The firm has an incentive to charge less than the market priceto earn higher revenue.c. The firm can sell only a limited amount of output at the marketprice before the market price will fall.d. Price-taking firms maximize profits by charging a price abovemarginal cost.ANS: A DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive17. Why does a firm in a competitive industry charge the market price?a. If a firm charges less than the market price, it loses potentialrevenue.b. If a firm charges more than the market price, it loses all itscustomers to other firms.c. The firm can sell as many units of output as it want to at themarket price.d. All of the above are correct.ANS: D DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive18. In a competitive market, no single producer can influence the market price becausea. many other sellers are offering a product that is essentiallyidentical.b. consumers have more influence over the market price thanproducers do.c. government intervention prevents firms from influencing price.d. producers agree not to change the price.ANS: A DIF: 2 REF: 14-1 NAT: AnalyticLOC: Perfect competition TOP: Competitive marketsMSC: Interpretive19. A competitive firm would benefit from charging a price below the market price because the firm would achievea. higher average revenue.。
经济学原理 曼昆第五版英文答案Chapter30
SOLUTIONS TO TEXT PROBLEMS:Quick Quizzes1. When the government of a country increases the growth rate of the money supply from 5percent per year to 50 percent per year, the average level of prices will start rising veryquickly, as predicted by the quantity theory of money. Nominal interest rates will increasedramatically as well, as predicted by the Fisher effect. The government may be increasingthe money supply to finance its expenditures.2. Six costs of inflation are: (1) shoeleather costs; (2) menu costs; (3) relative-price variabilityand the misallocation of resources; (4) inflation-induced tax distortions; (5) confusion andinconvenience; and (6) arbitrary redistributions of wealth. Shoeleather costs arise becauseinflation causes people to spend resources going to the bank more often. Menu costs occurwhen people spend resources changing their posted prices. Relative-price variability occursbecause as general prices rise, a fixed dollar price translates into a declining relative price, sothe relative prices of goods are constantly changing, causing a misallocation of resources.The combination of inflation and taxation causes distortions in incentives because people aretaxed on their nominal capital gains and interest income instead of their real income fromthese sources. Inflation causes confusion and inconvenience because it reduces money’sability to function as a unit of account. Unexpected inflation redistributes wealth betweenborrowers and lenders.Questions for Review1. An increase in the price level reduces the real value of money because each dollar in yourwallet now buys a smaller quantity of goods and services.2. According to the quantity theory of money, an increase in the quantity of money causes aproportional increase in the price level.3. Nominal variables are those measured in monetary units, while real variables are thosemeasured in physical units. Examples of nominal variables include the prices of goods,wages, and nominal GDP. Examples of real variables include relative prices (the price of onegood in terms of another), real wages, and real GDP. According to the principle of monetaryneutrality, only nominal variables are affected by changes in the quantity of money.4. Inflation is like a tax because everyone who holds money loses purchasing power. In ahyperinflation, the government increases the money supply rapidly, which leads to a highrate of inflation. Thus the government uses the inflation tax, instead of taxes, to finance itsspending.5. According to the Fisher effect, an increase in the inflation rate raises the nominal interestrate by the same amount that the inflation rate increases, with no effect on the real interestrate.6. The costs of inflation include shoeleather costs associated with reduced money holdings,menu costs associated with more frequent adjustment of prices, increased variability ofrelative prices, unintended changes in tax liabilities due to nonindexation of the tax code,confusion and inconvenience resulting from a changing unit of account, and arbitraryredistributions of wealth between debtors and creditors. With a low and stable rate ofimportant one is the interaction between inflation and the tax code, which may reduce saving and investment even though the inflation rate is low.7. 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. Problems and Applications 1. a. If people need to hold less cash, the demand for money shifts to the left, because there will be less money demanded at any price level. b. If the Fed does not respond to this event, the shift to the left of the demand for money combined with no change in the supply of money leads to a decline in the value of money (1/P), which means the price level rises, as shown in Figure 1.Value of Money, 1/p (high)Quantity of Money D 1D 2S 1Price Level p (low)(low)(high)Figure 1c. If the Fed wants to keep the price level stable, it should reduce the money supply from S 1 to S 2 in Figure 2. This would cause the supply of money to shift to the left by the same amount that the demand for money shifted, resulting in no change in the value of money and the price level. Value of Money, 1/p (high)Quantity of Money D 1D 2S 1Price Level p (low)(low)(high)S 22. With constant velocity, reducing the inflation rate to zero would require the money growthrate to equal the growth rate of output, according to the quantity theory of money (M x V = P x Y).3. In this problem, all amounts are shown in billions.a. Nominal GDP = P x Y = $10,000 and Y = real GDP = $5,000, so P = (P x Y)/Y =$10,000/$5,000 = 2.Because M x V = P x Y, then V = (P x Y)/M = $10,000/$500 = 20.b. If M and V are unchanged and Y rises by 5%, then because M x V = P x Y, P must fall by5%. As a result, nominal GDP is unchanged.c. To keep the price level stable, the Fed must increase the money supply by 5%, matchingthe increase in real GDP. Then, because velocity is unchanged, the price level will bestable.d. If the Fed wants inflation to be 10%, it will need to increase the money supply 15%.Thus M x V will rise 15%, causing P x Y to rise 15%, with a 10% increase in prices and a 5% rise in real GDP.4. If a country's inflation rate increases sharply, the inflation tax on holders of money increasessignificantly. Wealth in savings accounts is not subject to a change in the inflation taxbecause the nominal interest rate will increase with the rise in inflation. But holders ofsavings accounts are hurt by the increase in the inflation rate because they are taxed on their nominal interest income, so their real returns are lower.5. Hyperinflations usually arise when governments try to finance much of their expenditures byprinting money. This is unlikely to occur if the central bank (which is responsible forcontrolling the level of the money supply) is independent of the government.6. a. When the price of both goods doubles in a year, inflation is 100%. Let’s set the marketbasket equal to one unit of each good. The cost of the market basket is initially $4 andbecomes $8 in the second year. Thus, the rate of inflation is ($8 − $4)/$4 × 100% =100%. Because the prices of all goods rise by 100%, the farmers get a 100% increase in their incomes to go along with the 100%increase in prices, so neither is affected by thechange in prices.b. If the price of beans rises to $2 and the price of rice rises to $4, then the cost of themarket basket in the second year is $6. This means that the inflation rate is ($6 − $4) /$4 × 100% = 50%. Bob is better off because his dollar revenues doubled (increased100%) while inflation was only 50%. Rita is worse off because inflation was 50%percent, so the prices of the goods she buys rose faster than the price of the goods (rice) she sells, which rose only 33%.c. If the price of beans rises to $2 and the price of rice falls to $1.50, then the cost of themarket basket in the second year is $3.50. This means that the inflation rate is ($3.5 −$4) / $4 × 100% = -12.5%. Bob is better off because his dollar revenues doubled(increased 100%) while prices overall fell 12.5%. Rita is worse off because inflation was(rice) she sells, which fell 50%.d. The relative price of rice and beans matters more to Bob and Rita than the overallinflation rate. If the price of the good that a person produces rises more than inflation,he or she will be better off. If the price of the good a person produces rises less thaninflation, he or she will be worse off.7. The following table shows the relevant calculations:(a) (b) (c)(1) Nominal interest rate 10.0 6.0 4.0(2) Inflation rate 5.0 2.0 1.0rate 5.0 4.0 3.0(3) Before-tax real interest(4) Reduction in nominal interest rate due to 40% tax 4.0 2.4 1.6(5) After-tax nominal interest rate 6.0 3.6 2.4(6) After-tax real interest rate 1.0 1.6 1.4Row (3) is row (1) minus row (2). Row (4) is .40 x row (1). Row (5) is (1 − .40) x row (1), which equals row (1) minus row (4). Row (6) is row (5) minus row (2). Note that eventhough part (a) has the highest before-tax real interest rate, it has the lowest after-tax real interest rate. Note also that the after-tax real interest rate is much lower than the before-tax real interest rate.8. The shoeleather costs of going to the bank include the value of your time, gas for your carthat is used as you drive to the bank, and the inconvenience of not having more money on hand. These costs could be measured by valuing your time at your wage rate and valuing the gas for your car at its cost. Valuing the inconvenience of being short of cash is harder to measure, but might depend on the value of the shopping opportunities you give up by not having enough money to buy things you want. Your college president differs from you mainly in having a higher wage, thus having a higher cost of time.9. The functions of money are to serve as a medium of exchange, a unit of account, and a storeof value. Inflation mainly affects the ability of money to serve as a store of value, because inflation erodes money's purchasing power, making it less attractive as a store of value.Money also is not as useful as a unit of account when there is inflation, because stores have to change prices more often and because people are confused and inconvenienced by the changes in the value of money. In some countries with hyperinflation, stores post prices in terms of a more stable currency, such as the U.S. dollar, even when the local currency is still used as the medium of exchange. Sometimes countries even stop using their local currency altogether and use a foreign currency as the medium of exchange as well.10. a. Unexpectedly high inflation helps the government by providing higher tax revenue andreducing the real value of outstanding government debt.b. Unexpectedly high inflation helps a homeowner with a fixed-rate mortgage because hepays a fixed nominal interest rate that was based on expected inflation, and thus pays a lower real interest rate than was expected.c. Unexpectedly high inflation hurts a union worker in the second year of a labor contractbecause the contract probably based the worker's nominal wage on the expectedinflation rate. As a result, the worker receives a lower-than-expected real wage.d. Unexpectedly high inflation hurts a college that has invested some of its endowment ingovernment bonds because the higher inflation rate means the college is receiving alower real interest rate than it had planned. (This assumes that the college did notpurchase indexed Treasury bonds.)11. The redistribution from creditors to debtors is something that happens when inflation isunexpected, not when it is expected. The problems that occur with both expected andunexpected inflation include shoeleather costs associated with reduced money holdings, menu costs associated with more frequent adjustment of prices, increased variability ofrelative prices, unintended changes in tax liabilities due to nonindexation of the tax code, and the confusion and inconvenience resulting from a changing unit of account.12. a. The statement that "Inflation hurts borrowers and helps lenders, because borrowersmust pay a higher rate of interest," is false. Higher expected inflation means borrowerspay a higher nominal rate of interest, but it is the same real rate of interest, soborrowers are not worse off and lenders are not better off. Higher unexpected inflation,on the other hand, makes borrowers better off and lenders worse off.b. The statement, "If prices change in a way that leaves the overall price level unchanged,then no one is made better or worse off," is false. Changes in relative prices can makesome people better off and others worse off, even though the overall price level does not change. See problem 7 for an illustration of this.c. The statement, "Inflation does not reduce the purchasing power of most workers," istrue. Most workers' incomes keep up with inflation reasonably well.。
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Chapter 30Money Growth and InflationTRUE/FALSE1. The inflation rate is measured as the percentage change in a price index.ANS: T DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: InflationKEY: MSC: Definitional2. U.S. prices rose at an average annual rate of about 4 percent over the last 70 years.ANS: T DIF: 1 REF: 30-0NAT: Analytic LOC: The role of money TOP: InflationMSC: Analytical3. The United States has never had deflation.ANS: F DIF: 1 REF: 30-0NAT: Analytic LOC: The role of money TOP: DeflationMSC: Definitional4. In the 1990s, U.S. prices rose at about the same rate as in the 1970s.ANS: F DIF: 1 REF: 30-0NAT: Analytic LOC: The role of money TOP: U.S. inflationMSC: Definitional5. As the price level falls, the value of money falls.ANS: F DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Value | MoneyMSC: Interpretive6. The price level is determined by the supply of, and demand for, money.ANS: T DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money marketMSC: Definitional7. If the quantity of money supplied is greater than the quantity demanded, then prices should fall.ANS: F DIF: 2 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money marketMSC: Analytical8. Dollar prices and relative prices are both nominal variables.ANS: F DIF: 1 REF: 30-1NAT: Analytic LOC: The role of moneyTOP: Nominal variables | Real variables MSC: Definitional9. The quantity equation is M x V = P x Y.ANS: T DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Quantity equationMSC: Definitional10. According to the Fisher effect, if inflation rises then the nominal interest rate rises.ANS: T DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Fisher effectMSC: Definitional11. An increase in money demand would create a surplus of money at the original value of money.ANS: F DIF: 2 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money marketMSC: Applicative201412. Hyperinflations are associated with governments printing money to finance expenditures.ANS: T DIF: 1 REF: 30-1NAT: Analytic LOC: Unemployment and inflation TOP: HyperinflationMSC: Definitional13. For a given level of money and real GDP, an increase in velocity would lead to an increase in the price level. ANS: T DIF: 2 REF: 30-1NAT: Analytic LOC: The role of money TOP: Velocity of moneyMSC: Analytical14. The quantity theory of money can explain hyperinflations but not moderate i nflation.ANS: F DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: HyperinflationMSC: Interpretive15. If P represents the price of goods and services measured in money, then 1/P is the value of money measured interms of goods and services.ANS: T DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money | ValueMSC: Interpretive16. When the value of money is on the vertical axis, an increase in the price level shifts money demand to theright.ANS: F DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money demandMSC: Applicative17. The money supply curve shifts to the left when the Fed buys government bonds.ANS: F DIF: 2 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money supplyMSC: Analytical18. When the value of money is on the vertical axis, the money supply curve slopes upward because an increase inthe value of money induces banks to create more money.ANS: F DIF: 2 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money supplyMSC: Definitional19. If the Fed increases the money supply, the equilibrium value of money decreases and the equilibrium pricelevel increases.ANS: T DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money marketMSC: Analytical20. A rising price level eliminates an excess supply of money.ANS: T DIF: 2 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money marketMSC: Analytical21. A rising value of money eliminates an excess supply of money.ANS: F DIF: 2 REF: 30-1NAT: Analytic LOC: The role of money TOP: Money marketMSC: Analytical22. Nominal GDP measures output of final goods and services in physical terms.ANS: F DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Nominal variablesMSC: Interpretive2016 Chapter 30 /Money Growth and Inflation23. The classical dichotomy is useful for analyzing the economy because in the long run nominal variables areheavily influenced by developments in the monetary system, and real variables are not.ANS: T DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Classical dichotomyMSC: Definitional24. The irrelevance of monetary changes for real variables is called monetary neutrality. Most economists acceptmonetary neutrality as a good description of the economy in the long run, but not the short run.ANS: T DIF: 2 REF: 30-1NAT: Analytic LOC: The role of money TOP: Monetary neutralityMSC: Interpretive25. The quantity theory of money implies that if output and velocity are constant, then a 50 percent increase in themoney supply would lead to less than a 50 percent increase in the price level.ANS: F DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Quantity theoryMSC: Applicative26. The source of all four classic hyperinflations was high rates of money growth.ANS: T DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: HyperinflationMSC: Definitional27. In the long run, an increase in the growth rate of the money supply leads to an increase in the real interest rate,but no change in the nominal interest rate.ANS: F DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: Quantity theoryMSC: Definitional28. Inflation induces people to spend more resources maintaining lower money holdings. The costs of doing thisare called shoeleather costs.ANS: T DIF: 1 REF: 30-2NAT: Analytic LOC: The role of money TOP: Shoeleather costs of inflation MSC: Definitional29. Shoeleather costs and menu costs are both costs of anticipated inflation.ANS: T DIF: 1 REF: 30-2NAT: Analytic LOC: Unemployment and inflationTOP: Shoeleather costs of inflation | Menu costs o f inflation MSC: Definitional30. For a given real interest rate, an increase in the inflation rate reduces the after-tax real interest rate.ANS: T DIF: 2 REF: 30-2NAT: Analytic LOC: Unemployment and inflation TOP:Inflation | Taxes | Real interest rate MSC: Analytical31. Inflation necessarily distorts saving when either real interest income or nominal interest income is taxed. ANS: F DIF: 2 REF: 30-2NAT: Analytic LOC: The role of money TOP: Inflation | Real interest rate MSC: Interpretive32. Inflation distorts savings when real interest income, rather than nominal interest income, is taxed.ANS: F DIF: 2 REF: 30-2NAT: Analytic LOC: The role of money TOP: Inflation | Real interest rate MSC: Interpretive33. Suppose the nominal interest rate is 10 percent; the tax rate on interest income is 28 percent, and the inflationrate is 6 percent. Then the after-tax real interest rate is -3.2 percent.ANS: F DIF: 2 REF: 30-2NAT: Analytic LOC: The role of money TOP: Taxes | Real interest rateMSC: Interpretive34. Suppose the nominal interest rate is 5 percent; the tax rate on interest income is 30 percent, and the after-taxreal interest rate is 0.8 percent. Then the inflation rate is 2.7 percent.ANS: T DIF: 2 REF: 30-2NAT: Analytic LOC: The role of money TOP: Taxes | Real interest rate MSC: Interpretive35. If the Fed were to unexpectedly increase the money supply, creditors would gain at the expense of debtors. ANS: F DIF: 1 REF: 30-2NAT: Analytic LOC: The role of moneyTOP: Wealth redistribution | Inflation MSC: Applicative36. If inflation is higher than expected, then borrowers make nominal interest payments that are less than theyexpected.ANS: F DIF: 2 REF: 30-2NAT: Analytic LOC: Unemployment and inflation TOP: Menu costs of inflationMSC: Applicative37. Inflation is costly only if it is unanticipated.ANS: F DIF: 1 REF: 30-2NAT: Analytic LOC: Unemployment and inflation TOP: Inflation costsMSC: Interpretive38. Even though monetary policy is neutral in the short run, it may have profound real effects in the long run. ANS: F DIF: 1 REF: 30-3NAT: Analytic LOC: The role of money TOP: Monetary neutralityMSC: InterpretiveSHORT ANSWER1. Why did farmers in the late 1800s dislike deflation?ANS:Most had large nominal debts. The decrease in the price level meant that they received less for what they produced and so made it harder to pay off the debts whose real value rose as prices fell.DIF: 2 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Deflation MSC: Analytical2. Explain the adjustment process in the money market that creates a change in the price level when the moneysupply increases.ANS:When the money supply increases, there is an excess supply of money at the original value of money. After the money supply increases, people have more money than they want to hold in their purses, wallets and checking accounts. They use this excess money to buy goods and services or lend it out to other people to buy goods and services. The increase in expenditures causes prices to rise and the value of money to fall. As the value of money falls, the quantity of money people want to hold increases so that the excess supply is eliminated. At the end of this process the money market is in equilibrium at a higher price level and a lower value of money.DIF: 2 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Money marketMSC: Analytical2018 Chapter 30 /Money Growth and Inflation3. Suppose the Fed sells government bonds. Use a graph of the money market to show what this does to the valueof money.ANS:When the Fed sells government bonds, the money supply decreases. This shifts the money supply curve from MS1 to MS2 and makes the value of money increase. Since money is worth more, it takes less to buy goods with it, which means the price level falls.DIF: 2 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Money marketMSC: Analytical4. Using separate graphs, demonstrate what happens to the money supply, money demand, the value of money,and the price level if:a. the Fed increases the money supply.b. people decide to demand less money at each value of money.ANS:a. The Fed increases the money supply. When the Fed increases the money supply, the money supply curveshifts right from MS1 to MS2. This shift causes the value of money to fall, so the price level rises.b. People decide to demand less money at each value of money. Since people want to hold less at eachvalue of money, it follows that the money demand curve will shift to the left from MD1 to MD2. Thedecrease in money demand results in a lower value of money and so a higher price level.DIF: 2 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Money marketMSC: Analytical5. According to the classical dichotomy, what changes nominal variables? What changes real variables? ANS:The classical dichotomy argues that nominal variables are determined primarily by developments in the monetary system such as changes in money demand and supply. Real variables are largely independent of the monetary system and are determined by productivity and real changes in the factor and loanable funds markets.DIF: 1 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Classical dichotomyMSC: Definitional6. Suppose that monetary neutrality holds. Of the following variables, which ones do not change when themoney supply increases?a. real interest ratesb. inflationc. the price leveld. real outpute. real wagesf. nominal wagesANS:a. real interest ratesd. real outpute. real wagesDIF: 1 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Monetary neutralityMSC: Interpretive7. Wages and prices are many times higher today than they were 30 years ago, yet people do not work a lot morehours or buy fewer goods. How can this be?ANS:Inflation has raised the general price level. An increase in the general price level has no effect on real variables in the long run. Wages are higher, but so are prices. Prices are higher, but so are wages and incomes. In the long run, people change their behavior in response to changes in real variables, not nominal ones.DIF: 2 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Nominal variables | Real variablesMSC: Interpretive8. Identify each of the following as nominal or real variables.a. the physical output of goods and servicesb. the overall price levelc. the dollar price of applesd. the price of apples relative to the price of orangese. the unemployment ratef. the amount that shows up on your paycheck after taxesg. the amount of goods you can purchase with the wage you get each hourh. the taxes that you pay the governmentANS:a. real variableb. nominal variablec. nominal variabled. real variablee. real variablef. nominal variableg. real variableh. nominal variableDIF: 1 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Nominal variables | Real variablesMSC: Interpretive2020 Chapter 30 /Money Growth and Inflation9. Define each of the symbols and explain the meaning o f M V = P Y.ANS:M is the quantity of money, V is the velocity of money, P is the price level, and Y is the quantity of o utput. P Y is nominal GDP. The amount people spend should equal the amount of money in the economy times the average number of times each unit of currency is spent.DIF: 1 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Velocity MSC: Definitional10. What assumptions are necessary to argue that the quantity equation implies that increases in the money supplylead to proportional changes in the price level?ANS:We must suppose that V is relatively constant and that changes in the money supply have no effect on real output. DIF: 2 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Quantity theoryMSC: Definitional11. What is the inflation tax, and how might it explain the creation of inflation by a central bank?ANS:The inflation tax refers to the fact that inflation is a tax on money. When prices rise, the value of money currently held is reduced. Hence, when a government raises revenue by printing money, it obtains resources from households by taxing their money holdings through inflation rather than by sending them a tax bill. In countries where governments are unable or unwilling to raise revenues by raising taxes explicitly, the inflation tax may be an alternative source of revenue.DIF: 1 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Inflation tax MSC: Interpretive12. Economists agree that increases in the money-supply growth rate increase inflation and that inflation isundesirable. So why have there been hyperinflations and how have they been ended?ANS:Typically, the government in countries that had hyperinflation started with high spending, inadequate tax revenue, and limited ability to borrow. Therefore, they turned to the printing presses to pay their bills. Massive and continued increases in the quantity of money led to hyperinflation, which ended when the governments instituted fiscal reforms eliminating the need for the inflation tax and subsequently slowed money supply growth.DIF: 2 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: HyperinflationMSC: Interpretive13. Suppose that velocity and output are constant and that the quantity theory and the Fisher effect both hold.What happens to inflation, real interest rates, and nominal interest rates when the money supply growth rate increases from 5 percent to 10 percent?ANS:Inflation and nominal interest rates each increase by 5 percent points. There is no change in the real interest rate or any other real variable.DIF: 1 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Inflation MSC: Analytical14. In recent years Venezuela and Russia have had much higher nominal interest rates than the United Stateswhile Japan has had lower nominal interest rates. What would you predict is true about money growth in these other countries? Why?ANS:The Fisher effect says that increases in the inflation rate lead to one-to-one increases in nominal interest rates. The quantity theory says that in the long run, inflation increases one-to-one with money supply growth. It follows that differences in nominal interest rates may be due to differences in money supply growth rates. It is reasonable to guess that much higher nominal interest rates in Venezuela and Russia indicate higher money supply growth while lower interest rates in Japan indicate lower money supply growth.DIF: 1 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Fisher effect MSC: Applicative15. The U.S. Treasury Department issues inflation-indexed bonds. What are inflation-indexed bonds and why arethey important?ANS:Inflation-indexed bonds are bonds whose interest and principal payments are adjusted upward for inflation, guaranteeing their real purchasing power in the future. They are important because they provide a safe, inflation- proof asset for savers and they may allow the Treasury to borrow more easily at a lower current cost.DIF: 1 REF: 30-1 NAT: AnalyticLOC: The role of money TOP: Index bonds MSC: Definitional16. List and define any two of the costs of high inflation.ANS:The costs include:Shoeleather costs: the resources wasted when inflation induces people to reduce their money holdings.Menu costs: the cost of more frequent price changes at higher inflation rates.Relative Price Variability: because prices change infrequently, higher inflation causes relative prices to vary more. Decisions based on relative prices are then distorted so that resources may not be allocated efficiently.Inflation Induced Tax Distortions: the income tax is not completely indexed for inflation; an increase in nominal income created by inflation results in higher real tax rates that discourage savings.Confusion and Inconvenience: inflation decreases the reliability of the unit of account making it more complicated to differentiate successful and unsuccessful firms thereby impeding the efficient allocation of funds to alternative investments.Unexpected Inflation: inflation decreases the real value of debt thereby transferring wealth from creditors to debtors. DIF: 1 REF: 30-2 NAT: AnalyticLOC: The role of money TOP: Inflation costsMSC: Definitional17. Inflation distorts relative prices. What does this mean and why does it impose a cost on society?ANS:Relative prices are the value of one good in terms of other goods. Relative prices ordinarily provide signals concerning the relative scarcity of goods so the goods may be allocated efficiently. Some prices change infrequently, so that when inflation rises, there is greater variation in relative prices. However, changes in relative prices created by inflation do not signal changes in the scarcity of goods and so lead to an inefficient allocation of goods and resources.DIF: 1 REF: 30-2 NAT: AnalyticLOC: The role of money TOP: Relative price variabilityMSC: Interpretive18. Explain how inflation affects savings.ANS:Inflation discourages savings. Income tax is collected on nominal rather than real interest rates. So an increase in inflation will increase nominal interest rates and taxes. The increase in taxes in turn lowers the real return on savings and so discourages savings.DIF: 1 REF: 30-2 NAT: AnalyticLOC: The role of money TOP: Saving | InflationMSC: Applicative2022 Chapter 30 /Money Growth and Inflation19. The U.S. Treasury Department began issuing inflation-indexed bonds in early 1997. Since these assets arevirtually risk free, both in terms of default risk and inflation risk, will they quickly replace all other kinds of assets that still entail risk of one kind or another, such as ordinary government bonds or corporate bonds?Explain.ANS:When individuals are choosing between assets of different kinds, they consider both expected return and risk. Because the new inflation-indexed bonds have very low risk, they will also have very low real interest rates. So they will not replace other, more risky assets that promise to pay a much higher real interest rate. They do, however, offer a way of escaping some inflation risk, and have become a popular addition to portfolios.DIF: 1 REF: 30-2 NAT: AnalyticLOC: The role of money TOP: Index bonds MSC: AnalyticalSec00 - Money Growth and InflationMULTIPLE CHOICE1. Over the past 70 years, prices in the U.S. have risen on average abouta. 2 percent per year.b. 4 percent per year.c. 6 percent per year.d. 8 percent per year.ANS: B DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Definitional2. Over the past 70 years, the overall price level in the U.S. has experienced a(n)a. 4-fold increase.b. 8-fold increase.c. 12-fold increase.d. 16-fold increase.ANS: D DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Definitional3. Over the last 70 years, the average annual U.S. inflation rate was abouta. 2 percent, implying that prices have increased 10-fold.b. 4 percent, implying that prices have increased 10-fold.c. 2 percent, implying that prices have increased 16-fold.d. 4 percent, implying that prices increased about 16-fold.ANS: D DIF: 2 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Definitional4. Inflation can be measured by thea. change in the consumer price index.b. percentage change in the consumer price index.c. percentage change in the price of a specific commodity.d. change in the price of a specific commodity.ANS: B DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: InflationMSC: Definitional5. Which of the following is not correct?a. The inflation rate is measured as the percentage change in a price index.b. For the last 40 or so years, U.S. inflation hasn’t shown much variation from its average rate ofabout 2 percent.c. During the 19th century there were long periods of falling prices.d. Some economists argue that the costs of moderate inflation are not nearly as large as the generalpublic believes.ANS: B DIF: 2 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: InflationMSC: Interpretive6. In which of the following cases was the inflation rate 10 percent over the last year?a. One year ago the price index had a value of 110 and now it has a value of 120.b. One year ago the price index had a value of 120 and now it has a value of 132.c. One year ago the price index had a value of 126 and now it has a value of 140.d. One year ago the price index had a value of 145 and now it has a value of 163.ANS: B DIF: 2 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Applicative7. If the price level increased from 120 to 126, then what was the inflation rate?a. 3 percentb. 5 percentc. 6 percentd. None of the above is correct.ANS: B DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Applicative8. If the price level increased from 120 to 150, then what was the inflation rate?a. 30 percentb. 25 percentc. 20 percentd. None of the above is correct.ANS: B DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: Inflation rateMSC: Applicative9. When prices are falling, economists say that there isa. disinflation.b. deflation.c. a contraction.d. an inverted inflation.ANS: B DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: DeflationMSC: Definitional10. Deflationa. increases incomes and enhances the ability of debtors to pay off their debts.b. increases incomes and reduces the ability of debtors to pay off their debts.c. decreases incomes and enhances the ability of debtors to pay off their debts.d. decreases incomes and reduces the ability of debtors to pay off their debts.ANS: D DIF: 2 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: DeflationMSC: Interpretive2024 Chapter 30 /Money Growth and Inflation11. If the price index in some country were falling over time, economists would say that country hada. disinflation.b. deflation.c. a contraction.d. an inverted inflation.ANS: B DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: DeflationMSC: Interpretive12. The term hyperinflation refers toa. the spread of inflation from one country to others.b. a decrease in the inflation rate.c. a period of very high inflation.d. inflation accompanied by a recession.ANS: C DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: Hyperinflation MSC: Definitional13. Which of the following statements about U.S. inflation is not correct?a. Low inflation was viewed as a triumph of President Carter's economic policy.b. There were long periods in the nineteenth century during which prices fell.c. The U.S. public has viewed inflation rates of even 7 percent as a major economic problem.d. The U.S. inflation rate has varied over time, but international data show even more variation. ANS: A DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: InflationMSC: Definitional14. Which of the following statements concerning the history of U.S. inflation is not correct?a. Prices rose at an average annual rate of about 4 percent over the last 70 years.b. There was about a 16-fold increase in the price level over the last 70 years.c. Inflation in the 1970s was below the average over the last 70 years.d. During its history the United States has experienced periods of deflation.ANS: C DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: InflationMSC: Definitional15. Which of the following is correct?a. A period of hyperinflation is a period of extraordinarily high or extraordinarily low inflation.b. A period of deflation is any period during which the inflation rate is decreasing.c. During the 1990s, U.S. inflation averaged about 2 percent per year.d. All of the above are correct.ANS: C DIF: 2 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: InflationMSC: Definitional16. There was hyperinflation during thea. period 1880-1896 in the United States.b. 1970s in the United States.c. early part of the current century in Zimbabwe.d. All of the above are correct.ANS: C DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: Hyperinflation MSC: Definitional17. In early 2008, the central bank of Zimbabwe announced the inflation rate in that country had reacheda. 60 percent.b. 80 percent.c. 220 percent.d. 24,000 percent.ANS: D DIF: 1 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: HyperinflationMSC: Definitional18. Economists agree thata. neither high inflation nor moderate inflation is very costly.b. both high and moderate inflation are quite costly.c. high inflation is costly, but they disagree about the costs of moderate inflation.d. moderate inflation is as costly as high inflation.ANS: C DIF: 2 REF: 30-0NAT: Analytic LOC: Unemployment and inflation TOP: Inflation costsMSC: InterpretiveSec01 - Money Growth and Inflation - The Classical Theory of Inflation MULTIPLE CHOICE1. Inflation isa. more about the value of goods than about the value of money.b. more about the value of money than about the value of goods.c. best understood by looking at the individual prices that make up price indexes.d. viewed by most economists today as a phenomenon that cannot be explained by the ideas of the“classical” economists.ANS: B DIF: 1 REF: 30-1NAT: Analytic LOC: Unemployment and inflation TOP: InflationMSC: Interpretive2. The value of money falls as the price levela. rises, because the number of dollars needed to buy a representative basket of goods rises.b. rises, because the number of dollars needed to buy a representative basket of goods falls.c. falls, because the number of dollars needed to buy a representative basket of goods rises.d. falls, because the number of dollars needed to buy a representative basket of goods falls. ANS: A DIF: 1 REF: 30-1NAT: Analytic LOC: The role of money TOP: InflationMSC: Interpretive3. If P denotes the price of goods and services measured in terms of money, thena. 1/P represents the value of money measured in terms of goods and s ervices.b. P can be regarded as the “overall price level.”c. an increase in the value of money is associated with a decrease in P.d. All of the above are correct.ANS: D DIF: 2 REF: 30-1NAT: Analytic LOC: The role of money TOP: Price level | Value MSC: Interpretive4. If P denotes the price of goods and services measured in terms of money, thena. 1/P represents the value of money measured in terms of goods and s ervices.b. P can be interpreted as the inflation rate.c. the supply of money influences the value of P, but the demand for money does not.d. All of the above are correct.ANS: A DIF: 2 REF: 30-1NAT: Analytic LOC: The role of money TOP: Price level | Value MSC: Interpretive。