Q: Using the FRED database, locate the data on real and nominal
Using the FRED database, locate the data on real and nominal GDP for the U.S. economy. You may notice that there are both annual and quarterly data (i.e., measures of production every 3 months) availa...
See AnswerQ: Consider the economy from exercise 4. Calculate the inflation rate for
Consider the economy from exercise 4. Calculate the inflation rate for the 2020–2021 period using the GDP deflator based on the Laspeyres, Paasche, and chain- weighted indexes of&Aci...
See AnswerQ: This question asks you to use the FRED database to predict the
This question asks you to use the FRED database to predict the fed funds rate using the chapter’s monetary policy rule. Of course, there are many possible inflation measures you could use. This questi...
See AnswerQ: It is common to blame some of the poor macroeconomic performance of
It is common to blame some of the poor macroeconomic performance of the 1970s on the rise in oil prices. In the middle of the 1980s, however, oil prices declined sharply. Using the AS/AD framework, ex...
See AnswerQ: Between 2006 and the middle of 2008, oil prices rose sharply
Between 2006 and the middle of 2008, oil prices rose sharply—from around $60 to more than $140 per barrel. By the end of 2008, however, oil prices had fallen even more sharply, to just over $40 per ba...
See AnswerQ: Suppose the European and Japanese economies succumb to a recession and reduce
Suppose the European and Japanese economies succumb to a recession and reduce their demand for U.S. goods for several years. Using the AS/AD framework, explain the macroeconomic consequences of this s...
See AnswerQ: In the late 1990s and early 2000s, inflation was actually negative
In the late 1990s and early 2000s, inflation was actually negative in Japan (look back at Figure 13.19). This question asks you to explore a change in policy to achieve a higher inflation rate. Consid...
See AnswerQ: (a) Why does the AS curve slope upward?
(a) Why does the AS curve slope upward? (b) If the AS curve were more steeply sloped, how would the economy respond differently to aggregate demand shocks (shocks to
See AnswerQ: (a) Why does the AD curve slope downward?
(a) Why does the AD curve slope downward? (b) If the AD curve were more steeply sloped, how would the economy respond differently to aggregate demand shocks (shocks to
See AnswerQ: Suppose the economy starts with GDP at potential, the real interest
Suppose the economy starts with GDP at potential, the real interest rate and the marginal product of capital both equal to 3 percent, and a stable inflation rate of 2 percent. A mild financial crisis...
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