Questions from Macroeconomics

Q: Why are inflation expectations so important to modern monetary policy? What

Why are inflation expectations so important to modern monetary policy? What are several ways that central banks try to manage inflation expectations?

Q: What are financial frictions, and what role do such frictions play

What are financial frictions, and what role do such frictions play in the financial crisis? How does a financial friction enter the IS/MP diagram and the AS/AD framework?

Q: Why is the Great Recession best understood in the IS/ MP

Why is the Great Recession best understood in the IS/ MP– Phillips curve framework instead of the AS/AD framework?

Q: What is deflation, and what problems does deflation pose for the

What is deflation, and what problems does deflation pose for the macro economy? How does deflation interact with the zero lower bound for nominal interest rates?

Q: Describe the Fed’s balance sheet in “normal” times. How

Describe the Fed’s balance sheet in “normal” times. How did it change during the financial crisis? Why?

Q: Why are capital requirements an important part of any reform to improve

Why are capital requirements an important part of any reform to improve the functioning of the financial system?

Q: When and where did sustained economic growth first begin? How much

When and where did sustained economic growth first begin? How much inequality in per capita income was there throughout the countries of the world a thousand years ago? How much is there today?

Q: Create a new table that contains only the last three columns of

Create a new table that contains only the last three columns of the table in exercise 5. This time, instead of reporting the numbers relative to the U.S. value, report the inverse of these numbers. Fo...

Q: Compute the average annual growth rate of per capita GDP in each

Compute the average annual growth rate of per capita GDP in each of the cases below. The levels are provided for 1980 and 2014, measured in constant 2011 dollars.11

Q: Using the FRED database, download a graph of the share of

Using the FRED database, download a graph of the share of income paid to labor for the nonfarm business sector of the U.S. economy, back to 1947. (For an introduction to FRED, see the case study “The...