Questions from Macroeconomics

Q: What key simplifying assumption allows us to use the labor market block

What key simplifying assumption allows us to use the labor market block of a DSGE model to study the immediate impact of shocks on the economy in that framework?

Q: How are interest rates and growth rates related according to the neoclassical

How are interest rates and growth rates related according to the neoclassical consumption model, and why?

Q: Consider the complete dynamic response of the economy to a temporary rise

Consider the complete dynamic response of the economy to a temporary rise in government purchases in the AS/AD framework. (a) Draw the AS/AD graph associated with this shock. (b) Plot the impulse resp...

Q: What information does an impulse response function convey?

What information does an impulse response function convey?

Q: Summarize the key facts about the behavior of the personal saving rate

Summarize the key facts about the behavior of the personal saving rate during recent decades, and place these facts in their macroeconomic context.

Q: Let’s use the arbitrage equation to determine the price of a patent

Let’s use the arbitrage equation to determine the price of a patent in a simple setting. Let R denote the interest rate, let pi denote the price of an “idea” that is under patent, and let Prof denote...

Q: What determines the price- earnings ratio for a stock? What

What determines the price- earnings ratio for a stock? What does this imply about detecting bubbles in the stock market?

Q: Using the Country Snapshots data file (snapshots.pdf), study

Using the Country Snapshots data file (snapshots.pdf), study the macroeconomic performance of Mexico, Indonesia, and Korea after the financial crises in each region. How large were the declines in GDP...

Q: What are three sources of saving that can be used to finance

What are three sources of saving that can be used to finance investment? What is “crowding out”?

Q: Does the level of the exchange rate matter in the long run

Does the level of the exchange rate matter in the long run? Why or why not?