Questions from Macroeconomics

Q: What are adaptive expectations? What justifies the assumption of adaptive expectations

What are adaptive expectations? What justifies the assumption of adaptive expectations in Phillips curve analysis?

Q: Immediately after the central bank of New Zealand adopted inflation targeting in

Immediately after the central bank of New Zealand adopted inflation targeting in 1989, economic growth was low and unemployment increased for some time (until 1992), but later, economic growth resumed...

Q: According to modern Phillips curve analysis, what factors determine the rate

According to modern Phillips curve analysis, what factors determine the rate of inflation? How do changes in each factor affect the short-run Phillips curve?

Q: What relationship does the aggregate supply curve describe? How is this

What relationship does the aggregate supply curve describe? How is this relationship depicted with the long-run aggregate supply curve?

Q: What is Okun’s law? How do we combine it with Phillips

What is Okun’s law? How do we combine it with Phillips curve analysis to derive the short-run aggregate supply curve?

Q: Why does the short-run aggregate supply curve slope upward?

Why does the short-run aggregate supply curve slope upward?

Q: What causes the long-run aggregate supply curve to shift?

What causes the long-run aggregate supply curve to shift?

Q: Identify the four main categories of government spending and give an example

Identify the four main categories of government spending and give an example of each. What are the government’s four main revenue sources?

Q: How does the Ricardian equivalence view of the effects of tax cuts

How does the Ricardian equivalence view of the effects of tax cuts (and budget deficits) differ from the traditional view? What objections to the Ricardian equivalence view have been raised?

Q: What is a budget deficit, and what are the two main

What is a budget deficit, and what are the two main ways in which the government can finance deficit spending? Which of these methods of financing deficits does the U.S. government most commonly use?...