Questions from Macroeconomics

Q: Why are incomes so much more unequal in poor nations than in

Why are incomes so much more unequal in poor nations than in rich ones?

Q: Why do some nations grow and prosper while others stagnate?

Why do some nations grow and prosper while others stagnate?

Q: What policies would Keynesian, monetarists, and supply-siders advocate

What policies would Keynesian, monetarists, and supply-siders advocate for (a) restraining inflation and (b) reducing unemployment?

Q: If policymakers have instant data on the economy’s performance, should they

If policymakers have instant data on the economy’s performance, should they respond immediately? Why or why not?

Q: Suppose it’s an election year and that aggregate demand is growing so

Suppose it’s an election year and that aggregate demand is growing so fast that it threatens to set off an inflationary movement. Why might Congress and the president hesitate to cut back on governme...

Q: Why is the multiplier higher for unemployment benefits than for infrastructure spending

Why is the multiplier higher for unemployment benefits than for infrastructure spending (News, p. 401)? Which occurs faster?

Q: Suppose the government proposes to cut taxes while maintaining the current level

Suppose the government proposes to cut taxes while maintaining the current level of government expenditures. To finance this deficit, it may either (a) sell bonds to the public or (b) print new mon...

Q: Suppose the economy is slumping into recession and needs a fiscal policy

Suppose the economy is slumping into recession and needs a fiscal policy boost. Voters, however, are opposed to larger federal deficits. What should policymakers do?

Q: What are the pros and cons of tax cuts or increased government

What are the pros and cons of tax cuts or increased government spending as stimulative tools?

Q: What is the “magic wand” referred to in this chapter’s

What is the “magic wand” referred to in this chapter’s opening quotation?