Questions from Macroeconomics

Q: Using the FRED database, download graphs of the U.S

Using the FRED database, download graphs of the U.S.  employment- population ratio for men and women. (For help with FRED, see the case study “The FRED Database” in Chapter 2 on page 34.) (a) Display...

Q: Suppose the government decides to reform the tax system to reduce the

Suppose the government decides to reform the tax system to reduce the marginal income tax rate across the board. Explain the effect on wages, the employment- population ratio, and unemployment.

Q: Repeat exercise 4 for an interest rate of 1%, then for

Repeat exercise 4 for an interest rate of 1%, then for an interest rate of 5%. Arrange your answers in a table so you can more easily see the difference a change in the interest rate makes. Data from...

Q: Review the discussion of the value of a typical worker’s human capital

Review the discussion of the value of a typical worker’s human capital in Section 7.6 on page 191. (a) Re compute the present discounted value in the following cases: R = 0.01, R = 0.02, R = 0.04,...

Q: To make the calculation of the present discounted value of a worker’s

To make the calculation of the present discounted value of a worker’s human capital more realistic, suppose labor income starts at $50,000 initially, but then grows at a constant rate of 2% per year a...

Q: In the text, we supposed a college education raised a person’s

In the text, we supposed a college education raised a person’s wage by $30,000 per year, from $40,000 to $70,000. Assume the interest rate is 3% and there is no growth in wages, then answer the follow...

Q: Consider an economy that produces oranges and boomerangs. The prices and

Consider an economy that produces oranges and boomerangs. The prices and quantities of these goods in two different years are reported in the table below. Fill in the missing entries.

Q: Using the data on the consumer price index reported in Table 8

Using the data on the consumer price index reported in Table 8.1, calculate the value in 2015 of the following items (refer to the nearest year in the table to do each calculation): (a) Th...

Q: Using the FRED database, create a single graph containing the 10

Using the FRED database, create a single graph containing the 10-year government bond yield (one measure of a nominal interest rate) and the inflation rate for Italy. You may find it helpful to use th...

Q: Consider the following two questions. (a) Can the

Consider the following two questions. (a) Can the real interest rate be negative? In what circumstances? (b) Can the nominal interest rate be negative? Discuss.