Questions from Macroeconomics

Q: How do macroeconomists distinguish between flexible and sticky prices and wages?

How do macroeconomists distinguish between flexible and sticky prices and wages?

Q: In the Solow growth model, which variables are exogenous and which

In the Solow growth model, which variables are exogenous and which are endogenous?

Q: What has been the general experience of countries that have adopted inflation

What has been the general experience of countries that have adopted inflation targeting?

Q: Suppose the economy of India can be represented by the following production

Suppose the economy of India can be represented by the following production function: Y = AK1>3L2>3. Assume that during 2014, India’s technological growth (Solow residual) is 4%, and the growth rates...

Q: Suppose that in a given economy all goods and services produced are

Suppose that in a given economy all goods and services produced are sold in perfectly competitive markets. Would you represent this economy using the classical or Keynesian approach? Explain why.

Q: The Federal Reserve has promised that at some future date, it

The Federal Reserve has promised that at some future date, it will raise interest rates as part of its “exit strategy” from the expansionary monetary policy it pursued in the aftermath of the global...

Q: Is stabilization policy more likely to be conducted with monetary policy or

Is stabilization policy more likely to be conducted with monetary policy or fiscal policy? Why?

Q: Describe the effect of an increase in next period’s income on the

Describe the effect of an increase in next period’s income on the intertemporal budget constraint. If next year’s income increases by $3,000 and the interest rate is 5%, by how much does the intertemp...

Q: One of the most well-known population control policies is the

One of the most well-known population control policies is the one-child policy implemented by China since the late 1970s. Comment on the side effects of such a policy. This policy has been dubbed a su...

Q: Suppose total population is 100 million and 25% is devoted to

Suppose total population is 100 million and 25% is devoted to the production of research and development. Using the simplified version of the Romer model outlined in the chapter, calculate the followi...