32．The New York Times cost $0.15 in 1970 and $0.75 in 2000. The average wage in manufacturing was $3.36 per hour in 1970 and $14.26 in 2000. a. By what percentage did the price of a newspaper rise? b. By what percentage did the wage rise? c. In each year, how many minutes does a worker have to work to earn enough to buy a newspaper? d. Did workers’ purchasing power in terms of newspaper rise or fall?
33．Suppose that US Congress passes an investment tax credit, which subsidizes domestic investment. How does this policy affect national saving, domestic investment, net capital outflow, the interest rate, the exchange rate, and the trade balance (net export)?
34．Japan generally runs a significant trade surplus. Do you think this is most related to high foreign
demand for Japanese goods, a high Japanese saving rate relative to Japanese investment, or structural barriers against imports into Japan? Explain your answer.
35．It’s often suggested that the Federal Reserve try to achieve zero inflation. If we assume that velocity
is constant, does zero-inflation goal require that the rate of money growth equal zero? If yes, explain why. If not, explain what the rate of money growth should equal.
四、讨论题 (每小题 10 分)
1. Assume the economy is in a recession. Explain how each of the following policies would affect consumption and investment. In each case, indicate any direct effects, any effects resulting from changes in total output, any effects resulting from changes in interest rate, and the overall effect. If there are conflicting effects making the answer ambiguous, say so. a). a reduction in taxes; b) an expansion of the money supply.
2. In 1939, with the U.S. economy not yet fully recovered from the Great Depression, President Roosevelt proclaimed that Thanksgiving would fall a week earlier than usual so that the shopping period before Christmas would be longer. Explain this decision, using the model of aggregate demand and aggregate supply.
3. Suppose government spends $3 billion to buy police cars. Explain why aggregate demand might increase by more than $3 billion. Explain why aggregate demand might increase by less than $3
billion.
4. List three goods for which the law of one price is likely to hold, and three goods for which it is not. Justify your choices.
参考答案
一、选择题
1.b 2.c 3.d 4.c 5.d 6.d 7.d 8.a 9.d 10.c 11.c 12.d 13.a 14.c 15.b 16.a 17.d 18.c 19.d 20.b 21.b 22.b 23.a 24.c 25.b 26.d 27.a 28.b 29.b 30.a 31.c 32.b 33.d 34.a 35.d 36.d 37.d 38.a 39.a 40.c 41.b 42.c 43.a 44.b 45.b 46.b 47.d 48.a 49.d 50.c 51.c 52.b 53.b 54.b 55.b 56.c 57.b 58.d 59.b 60.d 61.c 62.c 63.d 64.b 65.a 66.a 67.a 68.b 69.b 70.a 71.b 72.b 73.c 74.a 75.b 76.b 77.c 78.b 79.b 80.b 81.a 82.d 83.c 84.c 85.b 86.d 87.d 88.a 89.a 90.d 91.a 92.d 93.c 94.c 95.a 96.b 97.b 98.d 99.d 100.b 101.a 102.c 103.d 104.d 105.d 106.d 107.c 108.b 109.b 110.c 111.a 112.d 113.b 114.c 115.a 116.c 117.c 118.b 119.a 120.d 121.d 122.c 123.a 124.b 125.b 126.d 127.b 128.b 129.c 130.c 131.c 132.c 133.a 134.b 135.b 136.c 137.d 138.a 139.b 140.d 141.c 142.d 143.d 144.b 145.d 146.a 147.c 148.d 149.d 150.a 151.c 152.b 153.b 154.a 155.d 156.c
二、判断题
1.T 2.T 3.T 4.T 5.T 6.T 7.T 8.F 9.T 10.F 11.T 12.T 13.T 14.T 15.F 16.T 17.F 18.T 19.T 10.T 21.T 22.F 23.T 24.F 25.F 26.T 27.F 28.T 29.F 30.T 31.T 32.F 33.T 34.T 35.F 36.T 37.T 38.T 39.F 40.F 41.T 42.F 43.F 44.T 45.T 46.F 47.F 48.F 49.F 50.F 51.T 52.F 53.T 54.T 55.T 56.T 57.T 58.F 59.F 60.F61.F 62.F 63.T 64.T 65.T 66.F 67.T 68.F 69.F 70.F 71.F 72.T 73.F 74.F 75.T 76.T 77.T 78.T 79.T 80.T 81.T 82.F 83.F 84.F 85.T 86.T 87.T 88.F 89.T 90.T 91.F 92.T 93.F 94.F 95.T 96.T 97.F 98.F 99.T 100.F 101.T 102.T 103.T 104.T 105. F
三、名词解释
1.the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases.
2.the rate at which a person can trade the currency of one country for the currency of another.
3.the offset in aggregate demand that results when expansionary fiscal policy raises the interest rate and thereby reduces investment spending. 4.a period of falling output and rising prices.
5.changes in fiscal policy that stimulate aggregate demand when the economy goes into a recession without policymakers having to take any deliberate action.
6.the property whereby contries that start off poor tend to grow more rapidly than countries that start off rich.
7.an excess of imports over exports.
8.a large and sudden reduction in the demand for assets located in a country. 9.a severe recession.
10.a decrease in the value of a currency as measured by the amount of foreign currency it can buy. 11.a large and sudden reduction in the demand for assets located in a country. 12.a period of declining real incomes and rising unemployment.
13.society's understanding of the best ways to produce goods and services.
14.a government policy that directly influences the quantity of goods and services that a country imports or exports.
15.the knowledge and skills that workers acquire through education, training, and experience. 16.goods and services that are produced domestically and sold abroad.
17.a curve that shows the quantity of goods and services that households, firms, and the government want to buy at each price level.
18．refers to when net exports are zero—exports and imports are exactly equal.
四、简答题：
1.Property rights are an important prerequisite for the price system to work in a market economy. If an individual or company is not confident that claims over property or over the income from property can be protected, or that contracts can be enforced, there will be little incentive for individuals to save, invest, or start new businesses. Likewise, there will be little incentive for foreigners to invest in the real or financial assets of the country. The distortion of incentives will reduce efficiency in resource allocation and will reduce saving and investment which in turn will reduce the standard of living.
2. a. A municipal bond, because generally they have low credit risk and are not subject to federal income tax.
b. A junk bond. Because of their high risk, they have a high return.
c. A corporate bond that isn't a junk bond. Because they have more risk than government bonds and have no special tax treatment, they pay moderate rates of
return.
3.First National Bank of Me
4.The costs of inflation include \holdings to reduce your inflation tax; \costs of resource misallocation that result from the relative-price variability induced by inflation; the costs of inflation-induced tax distortions; the costs of confusion and inconvenience; and the costs associated with the arbitrary redistribution of wealth that accompany unexpected inflation.
5.Examples in the text (or variations) include increased immigration, a decrease in the minimum wage, more generous unemployment insurance, an increase in the capital stock, an increase in the average level of education, a discovery of new mineral deposits, technology, and removal of barriers to international trade.
6.See graph.
Assets Loans
$4,200
Liabilities Deposits $5,000
Reserves $800
Over time technological advances cause the long-run aggregate supply curve to shift right. Increases in the money supply cause the aggregate demand curve to shift right. Output growth puts downward pressure on the price level, but money supply growth contributes to rising prices.
7.The wealth effect is not very important because it operates through changes in the real value of money, and money is only a small fraction of household wealth. So it is unlikely that changes in the price level will lead to large changes in consumption spending through
this channel. The exchange-rate effect is not very important in the United States because trade with other countries represents a relatively small fraction of U.S. GDP.
8. If the interest rate is above equilibrium, there is an excess supply of money. People with more money than they want to hold given the current interest rate deposit the money in banks and buy bonds. The increase in funds to lend out causes the interest rate to fall. As the interest rate falls, the quantity of money demanded increases, which tends to diminish the excess supply of money.
9.The difference is that Malthus predicted that population growth would be greater than growth in the ability to increase output. He believed that people would continue to populate the earth until output reached a subsistence level. On the other hand Kremer argues that population growth increased productivity allowing people to improve their standard of living despite growing population. Kremer argues that with more population comes more innovations. The improvements in technology more than offset any adverse impact of the increase in population on the standard of living.
10. As shown in the graph below, the economy starts in equilibrium at point E0 with interest rate r0 and equilibrium quantity of saving and investment at q0. If the government succeeds in obtaining a surplus, there will be more public saving in the economy at each interest rate, and the supply of loanable funds curve will shift from S0 to S1. The new equilibrium will be at E1, with a lower interest rate, r1 and a higher quantity of saving and investment, q1. Hence, if the federal government succeeds in having a surplus, interest rates will fall and investment will increase.
Market for Loanable Funds
11. 1. Prices rise when the government prints too much money.
2. There is a short-run tradeoff between inflation and unemployment.