上海财经大学经济学院中级宏观经济学练习题二

ut ut 1 0.4( g yt 3%) Okun's law
t t 1 (ut 5%) Phillips curve
g yt gmt t Aggregate demand
a. What is the natural rate of unemployment for ห้องสมุดไป่ตู้his economy? b. Suppose that the unemployment rate has been equal to the natural rate for two years (this year and last year) and that the inflation rate is 8%. What is the growth rate of output? What is the growth rate of the money supply? c. Suppose that conditions in year t-1 are as in (b). In year t, the authorities use monetary policy to reduce the inflation rate to 4% in year t and keep it there. Please tabulate the values of the inflation rate, the unemployment rate, the growth rate of output and also the rate of nominal money growth in years t-1, t, t+1, t+2, and t+3. Explain your calculations.
IS-LM model, graphically illustrate and explain what effect an increase in the minimum wage will have on the economy. In your graphs, clearly illustrate the short-run and medium-run equilibria. Also include in your answer an explanation of the effects of this change in the minimum wage on the labor market and the equilibrium real wage. 5. Suppose that an economy can be described by the following three equations:
Problem Set #2
(due at the beginning of the class on Wednesday Oct. 29) 1. Consider the following behavioral equations: C = c0+ c1YD T = t0+ t1Y Y D= Y - T G and I are both constant. Assume that t1is between 0 and 1. a. Solve for equilibrium output. b. What is the multiplier? Does the economy respond more to changes in autonomous spending when t1is 0 or when t1 is positive? Explain. c. Why is fiscal policy (i.e. changes in taxes) in this case called an automatic stabilizer (i.e. stabilizing output)? 2. Suppose that money demand is given by Md= $Y (0.8 - 4i) where nominal income is $500 billion. Also, suppose that the supply of money is $100 billion. a. What is the equilibrium interest rate? b. If the Federal Reserve Bank wants to cut interest rate, i, by 5 percentage points, how should the Fed do in the open market and at what level should it set the supply of money? 3. Consider the following IS–LM model: C = 200 + .25YD I = 150 + .25Y - 1000i G = 250 T = 200 (M/P)d= 2Y - 8000i (M/P)s = 1600 a. Derive the IS relation. (Hint: You want an equation with Y on the left side and everything else on the right.) b. Derive the LM relation. (Hint: You want an equation with i on the left side and everything else on the right.) c. Solve for equilibrium real output. d. Solve for the equilibrium interest rate. e. Solve for the equilibrium values of C and I, and verify the value you obtained for Y by adding C, I, and G. f. Now suppose that the money supply increases to M/P =1,840. Solve for Y, i and C, and use the IS–LM diagram to show the effects on Y and i of this expansionary monetary policy. g. Set M/P equal to its initial value of 1,600. Now suppose that government spending increases to G = 400. Solve for Y, i and C, and use the IS–LM diagram to show the effects on Y and i of this expansionary fiscal policy. 4. Based on your understanding of the aggregate supply and aggregate demand model and the