Questions from Macroeconomics

Q: Draw a graph with a steep Phillips curve and a graph with

Draw a graph with a steep Phillips curve and a graph with a gently sloped Phillips curve. (a) Explain how the two economies respond differently to a boom and to a slump. (b) What are some factors that...

Q: Consider an economy that begins with output at its potential level and

Consider an economy that begins with output at its potential level and a relatively high inflation rate of 6%, reflecting some recent oil price shocks. As the head of the Federal Reserve, your job is...

Q: Suppose the economy exhibits a large, unexpected increase in productivity growth

Suppose the economy exhibits a large, unexpected increase in productivity growth that lasts for a decade. Policymakers are (quite reasonably) slow to learn what has happened to potential output and in...

Q: A real-world problem faced by policymakers, forecasters, and

A real-world problem faced by policymakers, forecasters, and businesses every day is how to judge the state of the economy. Consider the table below, showing hypothetical measures of real GDP in the c...

Q: Pick two figures from this chapter, and update them to include

Pick two figures from this chapter, and update them to include the latest available data. What does this tell you about how the economy has evolved since the Great Recession?

Q: Using the FRED database, create a graph of the price of

Using the FRED database, create a graph of the price of crude oil since 1987 based on “Crude Oil Brent— Europe.” (a) Display this graph. (b) How much more expensive (in nominal terms) is oil today tha...

Q: By now, you are relatively familiar with recent economic events in

By now, you are relatively familiar with recent economic events in the United States. But what about Europe? Write two paragraphs about the state of the economy in the Euro area over the past several...

Q: Choose two financial institutions and look up their balance sheets online.

Choose two financial institutions and look up their balance sheets online. (For example, Yahoo! Finance provides these data in an easily accessible form at http://finance.yahoo.com/q/bs?s=GS.) What is...

Q: Apply the supply- and- demand model to the following markets

Apply the supply- and- demand model to the following markets. In each case, state the key endogenous variables in the market as well as some important exogenous variables or parameters. Also, express...

Q: Consider the following balance sheets for two hypothetical financial institutions, bank

Consider the following balance sheets for two hypothetical financial institutions, bank B and bank C: (a) Fill in the missing entries in the balance sheets (denoted ???). (b) What is the leverage ra...