Questions from Macroeconomics

Q: The European Central Bank (ECB) conducts a press conference each

The European Central Bank (ECB) conducts a press conference each month where the president of the ECB presents the measures decided by the Bank Council and answers public questions. a. What do you thi...

Q: For each of the changes in expectations in parts a through d

For each of the changes in expectations in parts a through d, determine whether there is a shift in the IS curve, the LM curve, both curves, or neither. In each case assume that no other exogenous var...

Q: Consider the following statement: “The rational expectations assumption is unrealistic

Consider the following statement: “The rational expectations assumption is unrealistic because, essentially, it amounts to the assumption that every consumer has perfect knowledge of the economy.” Dis...

Q: Using fiscal policy to avoid the meltdown and debt crisis of 2009

Using fiscal policy to avoid the meltdown and debt crisis of 2009. As a result of the combined effects of the Great Recession and the European sovereign debt crisis, GDP of Greece declined from €281.4...

Q: A new president, who promised during the campaign that she would

A new president, who promised during the campaign that she would cut taxes, has just been elected. People trust that she will keep her promise, but expect that the tax cuts will be implemented only in...

Q: Refer to the Focus Box “Can a Budget Deficit Reduction Lead

Refer to the Focus Box “Can a Budget Deficit Reduction Lead to an Output Expansion? The Case of South Africa.” It provides an example of fiscal discipline in a developing country. a. What are the reas...

Q: Suppose, in a hypothetical economy, that the chairman of the

Suppose, in a hypothetical economy, that the chairman of the Fed unexpectedly announces that he will retire in one year. At the same time, the President announces her nominee to replace the retiring F...

Q: After the financial crisis of 2007 as noted in the chapter,

After the financial crisis of 2007 as noted in the chapter, almost every country has had to resorb the high fiscal deficit created to fight recession. However, the challenge was to restore a fiscal ba...

Q: Using the information in this chapter, label each of the following

Using the information in this chapter, label each of the following statements true, false, or uncertain. Explain briefly. a. If there are no statistical discrepancies, countries with current account d...

Q: Consider two fictional economies, one called the domestic country and the

Consider two fictional economies, one called the domestic country and the other the foreign country. Given the transactions listed in (a) through (g), construct the balance of payments for each countr...