国际经济学试题A参考答案

国际经济学参考答案
A 卷
ⅠKey Terms Explanation （5% for each terms, total 20%）
1、Stolper-Samuelson Theorem (斯托尔帕—萨缪尔森定理):
If the relative price of a good increases, then the real wage or rate of return of the factor used intensively in the production of that good increases, while the real wage or rate of return of the other factor decreases. The reverse is also true.
2、Trade diversion
Which occurs when lower-cost imports from outside the customs union are replaced by higher cost imports from a union member.
3、Relative PPP
It states that the percentage change in the exchange rate between two currencies over any period equals the difference between the percentage changes in national price levels.
4、AA Schedule
It shows all combinations of exchange rate and output that are consistent with equilibrium in the domestic money market and the foreign exchange market.
ⅡMultiple Choice Questions (Each question just has only ONE correct answer)（30%）
Ⅲ.Calculating Problems （10%）
1、Answer: Because a LC/ a LW=2; a*LC/ a*LW=1/2, the world equilibrium price of cloth should a value between a LC/ a LW and a*LC/ a*LW , the lower limit for the world equilibrium price of cloth should be 1/2
2、Using (E$/E,t– E$/E,t–1)/E$/E,t–1=∏US,t–∏E,t one gets:
ⅣShort Answer Questions (20%)
1、1) Albania refused to engage in international trade for ideological reasons. To maximize its economic welfare it would choose to produce at which point in the left diagram above? (2%) Answer: Albania would choose to produce at point a.
2) Now that the Cold War is over, Albania is interested in obtaining economic welfare gains from trade. Suppose the P A/P B at point a was equal to 1 and the relevant international relative price is P A/P B= 2. Albania would therefore choose to produce at which point (a, b, or c)? Given this additional information, in which good does Albania enjoy a comparative advantage (4%) Answer: Because (P A/P B)Albania=1/2(P A/P B)World, Albania has a comparative advantage in A. (2%)Therefore Albania would produce at production point b.(2%)
3) Suppose, as a result of various dynamic factors associated with exposure to international competition, Albania’s economy grew, and is now represented by the rightmost production possibility frontier in the right Figure above. If its point of production with trade was point c, would you consider this growth to be export-biased or import biased? If Albania were a large country with respect to the world trade of A and B, how would this growth affect Albania’s terms of trade? (4%)
Answer: If point c is the production point with trade, then Albania has a comparative advantage in good B. Therefore, from the shape of the new production possibility frontier (as compared to the original one), this is clearly an export-biased growth.(2%) This export-biased growth would tend to worsen Albania’s terms of trade. (2%)
2、1) Why does the R$ shift from R$1 to R$1+∆π at time t0? (figure b) (6%)
Answer: Figure (a) shows the sudden acceleration of U.S. money supply growth at time t0, the policy change generates expectation of more rapid currency depreciation in the future. (2%)
According to the Fisher effect: all else equal, a rise (fall) in a country’s expected inflation rate will eventually cause an equal rise (fall) in the interest rate that deposits of its currency offer, the dollar interest rate would rise from its initial level R$1 to a new level R$2 = R$1 + (see figure (b)) (4%) 2) Why does the U.S. price level jump upward at time t0? (figure c) (2%)
Answer: P US = M S US/ L (R$, Y US). At time t0, the level of the money supply does not jump upward (according to figure (a)) but there is an interest rate rise (according to figure (b)) that reduces money demand, so, the US price level does jump at t0.
3) Why does the Dollar/euro exchange rate, E$/€ jump upward at time t0? (figure d) (2%) Answer: Along with the upward jump in P US at t0, according to PPP, E$/€ = P US/P E, the simultaneous proportional upward jump in E$/€ .
Ⅴ. Illustration (20%)
Please illustrate the effect of the Permanent increase in the Money supply to a country’s output and exchange rate in the short and long run according to DD—AA model.
Answer：The permanent increase in the money supply raises output above its full-employment level. A permanent increase in the money supply develops the pressure on the prices. Over time, the inflationary pressure that follows a permanent money supply expansion pushes the price level to its new long-run value and returns the economy to full employment.。