Questions from Macroeconomics

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...

Q: 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...

Q: 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...

Q: 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...

Q: 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...

Q: 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...

Q: 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...

Q: (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

Q: (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

Q: 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...