Questions from Macroeconomics

Q: Discuss the following statement: “When Keynes stated that ’in the

Discuss the following statement: “When Keynes stated that ’in the long run, we are all dead’ he meant that we should focus only on the short run and not pay attention to any

Q: Why do governments provide safety nets for bank depositors, and what

Why do governments provide safety nets for bank depositors, and what are their consequences?

Q: According to the Reserve Bank of New Zealand Act of 1989 (

According to the Reserve Bank of New Zealand Act of 1989 (section 8): “The primary function of the Bank is to formulate and implement monetary policy directed to the economic objective of achieving an...

Q: Suppose the current administration decides to decrease government expenditures as a means

Suppose the current administration decides to decrease government expenditures as a means of cutting the existing government budget deficit. a) According to the aggregate demand and supply analysis, w...

Q: The recent debate about healthcare reform in the United States included arguments

The recent debate about healthcare reform in the United States included arguments about how the proposed reform might affect the efficiency of the U.S. economy. Based on the aggregate demand and suppl...

Q: The following table shows the inflation rate and output level for four

The following table shows the inflation rate and output level for four consecutive periods in a given economy. In period 1, the economy is at its long-run equilibrium (i.e., the inflation rate equals...

Q: Suppose one could measure the welfare gains derived from eliminating output (

Suppose one could measure the welfare gains derived from eliminating output (and unemployment) fluctuations in the economy. Assuming these gains are relatively small for the average individual, how do...

Q: The following panels describe two different short-run aggregate supply curves

The following panels describe two different short-run aggregate supply curves. In which situation is the case for non-activist policy stronger? Explain why.

Q: Assume that policy makers are using the Taylor rule as a basis

Assume that policy makers are using the Taylor rule as a basis for policy changes, as specified in Equation 1. Under each of the following scenarios, show how the real interest rate, output, and infla...

Q: The following table shows unemployment and inflation rates for Canada during the

The following table shows unemployment and inflation rates for Canada during the 1972–1982 period: a) Plot Canada’s unemployment rates during this period. On the...