Test Bank for Macroeconomics, 2nd Edition : Hubbard

This is completed downloadable of Test Bank for Macroeconomics, 2nd Edition : Hubbard

 

Product Details:

• ISBN-10 ‏ : ‎ 0132992795
• ISBN-13 ‏ : ‎ 978-0132992794
• Author:  Glenn Hubbard (Author), Anthony OBrien (Author), Matthew Rafferty (Author)

Hubbard, O’Brien, and Rafferty realize that most students enrolled in today’s intermediate macroeconomics courses are either undergraduate or masters students who are likely to become entrepreneurs, managers, bankers, stock brokers, accountants, lawyers, or government officials. Very few students will pursue a Ph.D. in economics. Given this student profile, Hubbard, O’Brien, and Rafferty’s text presents Intermediate Macroeconomics in the context of contemporary events, policy, and business with an integrated explanation of today’s financial crisis. Student and instructor feedback tells us that Hubbard, O’Brien, and Rafferty helps make the link between theory and real-world easier for students!

 

Table of Content:

1. Chapter 1 The Long and Short of Macroeconomics
2. Learning Objectives
3. When You Enter the Job Market can Matter a Lot
4. What Macroeconomics Is About
5. Macroeconomics in the Short Run and in the Long Run
6. Long-Run Growth in the United States
7. Some Countries Have Not Experienced Significant Long-Run Growth
8. Aging Populations Pose a Challenge to Governments Around the World
9. Unemployment in the United States
10. Unemployment Rates Differ Across Developed Countries
11. Inflation Rates Fluctuate Over Time and Across Countries
12. Economic Policy Can Help Stabilize the Economy
13. International Factors Have Become Increasingly Important in Explaining Macroeconomic Events
14. How Economists Think About Macroeconomics
15. What Is the Best Way to Analyze Macroeconomic Issues?
16. Macroeconomic Models
17. Solving the Problem
18. Assumptions, Endogenous Variables, and Exogenous Variables in Economic Models
19. Forming and Testing Hypotheses in Economic Models
20. Key Issues and Questions of Macroeconomics
21. Key Terms and Problems
22. Key Terms
23. 1.1 What Macroeconomics Is About Become familiar with the focus of macroeconomics.
24. Review Questions
25. Problems and Applications
26. 1.2 How Economists Think About Macroeconomics Explain how economists approach macroeconomic questions.
27. Review Questions
28. Problems and Applications
29. Data Exercises
30. Chapter 2 Measuring the Macroeconomy
31. Learning Objectives
32. How Do We Know When We Are in a Recession?
33. GDP: Measuring Total Production and Total Income
34. How the Government Calculates GDP
35. Production and Income
36. The Circular Flow of Income
37. An Example of Measuring GDP
38. National Income Identities and the Components of GDP
39. The Relationship Between GDP and GNP
40. GDP Versus GDI
41. GDP and National Income
42. Real GDP, Nominal GDP, and the GDP Deflator
43. Solving the Problem
44. Price Indexes and the GDP Deflator
45. Solving the Problem
46. The Chain-Weighted Measure of Real GDP
47. Comparing GDP Across Countries
48. Inflation Rates and Interest Rates
49. How Accurate Is the CPI?
50. The Way the Federal Reserve Measures Inflation
51. Interest Rates
52. Measuring Employment and Unemployment
53. Answering the Key Question
54. Key Terms and Problems
55. Key Terms
56. 2.1 GDP: Measuring Total Production and Total Income Explain how economists use gross domestic product (GDP) to measure total production and total income.
57. Review Questions
58. Problems and Applications
59. 2.2 Real GDP, Nominal GDP, and the GDP Deflator Discuss the difference between real GDP and nominal GDP.
60. Review Question
61. Problems and Applications
62. 2.3 Inflation Rates and Interest Rates Explain how the inflation rate is measured and distinguish between real and nominal interest rates.
63. Review Questions
64. Problems and Applications
65. 2.4Measuring Employment and Unemployment Understand how to calculate the unemployment rate.
66. Review Questions
67. Problems and Applications
68. Data Exercises
69. Chapter 3 The U.S. Financial System
70. Learning Objectives
71. The Wonderful World of Credit
72. An Overview of the Financial System
73. Financial Markets and Financial Intermediaries
74. Banking and Securitization
75. Asymmetric Information and Principal–Agent Problems in Financial Markets
76. Financial Crises, Government Policy, and the Financial System
77. Financial Intermediaries and Leverage
78. Bank Panics
79. Government Policies to Deal with Bank Panics
80. The Financial Crisis of 2007–2009
81. The Mortgage Market and the Subprime Lending Disaster
82. Runs on the Shadow Banking System
83. Government Policies to Deal with the Financial Crisis of 2007–2009
84. The Money Market and the Risk Structure and Term Structure of Interest Rates
85. The Demand and Supply of Money
86. Shifts in the Money Demand Curve
87. Equilibrium in the Money Market
88. Calculating Bond Interest Rates and the Concept of Present Value
89. Present Value and the Prices of Stocks and Bonds
90. Solving the Problem
91. The Economy’s Many Interest Rates
92. Answering the Key Question
93. Key Terms and Problems
94. Key Terms
95. 3.1 An Overview of the Financial System Describe the financial system and explain the role it plays in the economy.
96. Review Questions
97. Problems and Applications
98. 3.2 Financial Crises, Government Policy, and the Financial System Understand the role of the central bank in stabilizing the financial system.
99. Review Questions
100. Problems and Applications
101. 3.3 The Money Market and the Risk Structure and Term Structure of Interest Rates Explain how interest rates are determined in the money market and understand the risk structure and the term structure of interest rates.
102. Review Questions
103. Problems and Applications
104. Data Exercises
105. Chapter 4 The Global Financial System
106. Learning Objectives
107. Did U.S. Monetary Policy Slow Brazil’s Growth?
108. The Balance of Payments
109. The Current Account
110. The Financial Account
111. The Capital Account
112. Exchange Rates and Exchange Rate Policy
113. Nominal Exchange Rates
114. Real Exchange Rates
115. The Foreign-Exchange Market
116. Exchange Rate Policy
117. Policy Choices and the Current Exchange Rate Systems
118. What Factors Determine Exchange Rates?
119. Purchasing Power Parity
120. Why Purchasing Power Parity Doesn’t Hold Exactly
121. The Interest Parity Condition
122. Solving the Problem
123. The Loanable Funds Model and the International Capital Market
124. Saving and Supply in the Loanable Funds Market
125. Investment and the Demand for Loanable Funds
126. Explaining Movements in Saving, Investment, and the Real Interest Rate
127. The International Capital Market and the Interest Rate
128. Small Open Economy
129. Large Open Economy
130. Answering the Key Question
131. Key Terms and Problems
132. Key Terms
133. 4.1 The Balance of Payments Explain how to calculate the balance of payments.
134. Review Questions
135. Problems and Applications
136. 4.2 Exchange Rates and Exchange Rate Policy Understand the advantages and disadvantages of different exchange rate policies.
137. Review Questions
138. Problems and Applications
139. 4.3 What Factors Determine Exchange Rates? Discuss what factors determine exchange rates.
140. Review Questions
141. Problems and Applications
142. 4.4 The Loanable Funds Model and the International Capital Market Use the loanable funds model to analyze the international capital market.
143. Review Questions
144. Problems and Applications
145. Data Exercises
146. Chapter 5 The Standard of Living over Time and Across Countries
147. Learning Objectives
148. Who Is Number One?
149. The Aggregate Production Function
150. The Cobb–Douglas Production Function
151. The Demand for Labor and the Demand for Capital
152. Changes in Capital, Labor, and Total Factor Productivity
153. A Model of Real GDP in the Long Run
154. The Markets for Capital and Labor
155. Combining the Factor Markets with the Aggregate Production Function
156. The Division of Total Income
157. Solving the Problem
158. What Determines Levels of Real GDP Across Countries?
159. Why Real GDP per Worker Varies Among Countries
160. The per Worker Production Function
161. What Determines Labor Productivity?
162. What Determines Real GDP per Capita?
163. Total Factor Productivity and Labor Productivity
164. What Explains Total Factor Productivity?
165. Answering the Key Question
166. Key Terms and Problems
167. Key Terms
168. 5.1 The Aggregate Production Function Describe the aggregate production function.
169. Review Questions
170. Problems and Applications
171. 5.2 A Model of Real GDP in the Long Run Explain how real GDP is determined in the long run.
172. Review Questions
173. Problems and Applications
174. 5.3 Why Real GDP per Worker Varies Among Countries Understand why the standard of living varies across countries.
175. Review Questions
176. Problems and Applications
177. 5.4 Total Factor Productivity and Labor Productivity Understand why labor productivity varies across countries.
178. Review Questions
179. Problems and Applications
180. Data Exercises
181. Chapter 6 Long-Run Economic Growth
182. Learning Objectives
183. The Surprising Economic Rise of India
184. The Solow Growth Model
185. Capital Accumulation
186. The Steady State
187. Transition to the Steady State
188. Saving Rates and Growth Rates
189. Labor Force Growth and the Solow Growth Model
190. Labor Force Growth and the Steady State
191. The Effect of an Increase in the Labor Force Growth Rate
192. Solving the Problem
193. Technological Change and the Solow Growth Model
194. Technological Change
195. Technological Change and the Steady State
196. Steady-State Growth Rates
197. Balanced Growth, Convergence, and Long-Run Equilibrium
198. Convergence to the Balanced Growth Path
199. Do All Countries Converge to the Same Steady State?
200. Endogenous Growth Theory
201. AK Growth Models: Reconsidering Diminishing Returns
202. Two-Sector Growth Model: The Production of Knowledge
203. Policies to Promote Economic Growth
204. Answering the Key Question
205. Key Terms and Problems
206. Key Terms
207. 6.1 The Solow Growth Model Understand the effect of capital accumulation on labor productivity.
208. Review Questions
209. Problems and Applications
210. 6.2 Labor Force Growth and the Solow Growth Model Understand the effect of labor force growth on labor productivity.
211. Review Questions
212. Problems and Applications
213. 6.3 Technological Change and the Solow Growth Model Understand the effect of technological change on labor productivity and the standard of living.
214. Review Questions
215. Problems and Applications
216. 6.4 The Balanced Growth Path, Convergence, and Long-Run Equilibrium Explain balanced growth, convergence, and long-run equilibrium.
217. Review Questions
218. Problems and Applications
219. 6.5 Endogenous Growth Theory Explain the determinants of technological change using the endogenous growth model.
220. Review Questions
221. Problems and Applications
222. Data Exercises
223. Chapter 7 Money and Inflation
224. Learning Objectives
225. What Can You Buy With $100 Trillion?
226. What Is Money, and Why Do We Need It?
227. The Functions of Money
228. Commodity Money Versus Fiat Money
229. How Is Money Measured?
230. Which Measure of the Money Supply Should We Use?
231. The Federal Reserve and the Money Supply
232. How the Fed Changes the Monetary Base
233. The Process of Money Creation
234. The Quantity Theory of Money and Inflation
235. The Quantity Theory of Money
236. The Quantity Theory Explanation of Inflation
237. Solving the Problem
238. Can the Quantity Theory Accurately Predict the Inflation Rate?
239. The Relationships Among the Growth Rate of Money, Inflation, and the Nominal Interest Rate
240. Real Interest Rates and Expected Real Interest Rates
241. The Fisher Effect
242. Money Growth and the Nominal Interest Rate
243. The Costs of Inflation
244. Costs of Expected Inflation
245. How Large Are the Costs of Expected Inflation?
246. Costs of Unexpected Inflation
247. Inflation Uncertainty
248. Benefits of Inflation
249. Hyperinflation and Its Causes
250. Causes of Hyperinflation
251. German Hyperinflation After World War I
252. Answering the Key Question
253. Key Terms and Problems
254. Key Terms
255. 7.1 What Is Money, and Why Do We Need It? Define money and explain its functions.
256. Review Questions
257. Problems and Applications
258. 7.2 The Federal Reserve and the Money Supply Explain how the Federal Reserve changes the money supply.
259. Review Questions
260. Problems and Applications
261. 7.3 The Quantity Theory of Money and Inflation Describe the quantity theory of money and use it to explain the connection between changes in the money supply and the inflation rate.
262. Review Questions
263. Problems and Applications
264. 7.4 The Relationships Among the Growth Rate of Money, Inflation, and the Nominal Interest Rate Discuss the relationships among the growth rate of money, inflation, and nominal interest rates.
265. Review Questions
266. Problems and Applications
267. 7.5 The Costs of Inflation Explain the costs of a monetary policy that allows inflation to be greater than zero.
268. Review Questions
269. Problems and Applications
270. 7.6 Hyperinflation and Its Causes Explain the causes of hyperinflation.
271. Review Questions
272. Problems and Applications
273. Data Exercises
274. Open Market Operations
275. The Simple Deposit Multiplier
276. A More Realistic Money Multiplier
277. Chapter 8 The Labor Market
278. Learning Objectives
279. If Firms Have Trouble Finding Workers, Why Is the Unemployment Rate so High?
280. The Labor Market
281. Nominal and Real Wages
282. The Demand for Labor Services
283. Shifting the Demand Curve
284. The Supply of Labor Services
285. Factors That Shift the Labor Supply Curve
286. Equilibrium in the Labor Market
287. The Effect of Technological Change
288. Solving the Problem
289. Categories of Unemployment
290. Frictional Unemployment and Job Search
291. Structural Unemployment
292. Cyclical Unemployment
293. Full Employment
294. Unemployment Around the World
295. Duration of Unemployment Around the World
296. The Natural Rate of Unemployment
297. A Simple Model of the Natural Rate of Unemployment
298. Solving the Problem
299. What Determines the Natural Rate of Unemployment?
300. Why Does Unemployment Exist?
301. Equilibrium Real Wages and Unemployment
302. Efficiency Wages
303. Labor Unions Around the World
304. Minimum Wage Laws
305. Answering the Key Question
306. Key Terms and Problems
307. Key Terms
308. 8.1 The Labor Market Use the model of demand and supply for labor to explain how wages and employment are determined.
309. Review Questions
310. Problems and Applications
311. 8.2 Categories of Unemployment Define unemployment and explain the three categories of unemployment.
312. Review Questions
313. Problems and Applications
314. 8.3 The Natural Rate of Unemployment Explain the natural rate of unemployment.
315. Review Questions
316. Problems and Applications
317. 8.4 Why Does Unemployment Exist? Explain how government policies affect the unemployment rate.
318. Review Questions
319. Problems and Applications
320. Data Exercises
321. Chapter 9 Business Cycles
322. Learning Objectives
323. Is the Housing Cycle the Business Cycle?
324. The Short Run and the Long Run in Macroeconomics
325. The Keynesian and Classical Approaches
326. Macroeconomic Shocks and Price Flexibility
327. Why Are Prices Sticky in the Short Run?
328. What Happens During a Business Cycle?
329. The Changing Severity of the U.S. Business Cycle
330. How Do We Know the Economy Is in an Expansion or a Recession?
331. Measuring Business Cycles
332. Solving the Problem
333. Costs of the Business Cycle
334. Movements of Economic Variables During the Business Cycle
335. The Global Business Cycle
336. Shocks and Business Cycles
337. Multiplier Effects
338. An Example of a Shock with Multiplier Effects: The Bursting of the Housing Bubble
339. A Simple Model of the Business Cycle: Aggregate Demand and Aggregate Supply
340. Aggregate Demand and Aggregate Supply: An Introduction
341. Aggregate Supply Shocks and the Business Cycle
342. Aggregate Demand Shocks and the Business Cycle
343. Should Policy Try to Offset Shocks?
344. Answering the Key Question
345. Key Terms and Problems
346. Key Terms
347. 9.1 The Short Run and the Long Run in Macroeconomics Explain the difference between the short run and the long run in macroeconomics.
348. Review Questions
349. Problems and Applications
350. 9.2 What Happens During a Business Cycle? Understand what happens during a business cycle.
351. Review Questions
352. Problems and Applications
353. 9.3 Shocks and Business Cycles Explain how economists think about business cycles.
354. Review Questions
355. Problems and Applications
356. 9.4 A Simple Model of the Business Cycle: Aggregate Demand and Aggregate Supply Use the aggregate demand and aggregate supply model to explain the business cycle.
357. Review Questions
358. Problems and Applications
359. Data Exercises
360. Chapter 10 Explaining Aggregate Demand: The IS–MP Model
361. Learning Objectives
362. Fear of Falling (into a Recession)
363. The IS Curve: The Relationship Between Real Interest Rates and Aggregate Expenditure
364. Equilibrium in the Goods Market
365. The Multiplier Effect
366. The Government Purchases and Tax Multipliers
367. Solving the Problem
368. Constructing the IS Curve
369. Shifts of the IS Curve
370. The IS Curve and the Output Gap
371. The Monetary Policy Curve: The Relationship Between the Central Bank’s Target Interest Rate and Output
372. The Link Between the Short-Term Nominal Interest Rate and the Long-Term Real Interest Rate
373. Interest Rate Movements During the 2007–2009 Recession
374. Deriving the MP Curve Using the Money Market Model
375. Shifts of the MP Curve
376. Equilibrium in the IS–MP Model
377. Demand Shocks and Fluctuations in Output
378. Monetary Policy and Fluctuations in Real GDP
379. Solving the Problem
380. IS–MP and Aggregate Demand
381. Answering the Key Question
382. Key Terms and Problems
383. Key Terms
384. 10.1 The IS Curve: The Relationship Between Real Interest Rates and Aggregate Expenditure Explain how the IS curve represents the relationship between the real interest rate and aggregate expenditure.
385. Review Questions
386. Problems and Applications
387. 10.2 The Monetary Policy Curve: The Relationship Between the Central Bank’s Target Interest Rate and Output Use the monetary policy, MP, curve to show how the interest rate set by the central bank helps to determine the output gap.
388. Review Questions
389. Problems and Applications
390. 10.3 Equilibrium in the IS–MP Model Use the IS–MP model to understand why real GDP fluctuates.
391. Review Questions
392. Problems and Applications
393. Data Exercises
394. Asset Market Equilibrium
395. Deriving the LM Curve
396. Shifting the LM Curve
397. Equilibrium in the IS–LM Model
398. Solving the Problem
399. An Alternative Derivation of the MP Curve
400. Key Terms and Problems
401. Key Terms
402. Review Questions
403. Problems and Applications
404. Chapter 11 The IS–MP Model: Adding Inflation and the Open Economy
405. Learning Objectives
406. Where’s the Inflation?
407. The IS–MP Model and the Phillips Curve
408. Okun’s Law, the Output Gap, and the Phillips Curve
409. Movement Along an Existing Phillips Curve
410. Shifts of the Phillips Curve
411. How Well Does the Phillips Curve Fit the Inflation Data?
412. Using Monetary Policy to Fight a Recession
413. Solving the Problem
414. The Performance of the U.S. Economy During 2007–2009
415. Using the IS–MP Model to Analyze the Financial Crisis and the Housing Crash
416. The IS–MP Model and the Oil Shock of 2007–2008
417. The IS–MP Model in an Open Economy
418. The IS Curve with a Floating Exchange Rate
419. Monetary Policy with a Floating Exchange Rate
420. Equilibrium in an Open Economy with a Floating Exchange Rate
421. The IS–MP Model with a Fixed Exchange Rate
422. The IS Curve with a Fixed Exchange Rate
423. The MP Curve with a Fixed Exchange Rate
424. Equilibrium in an Open Economy with a Fixed Exchange Rate
425. Answering the Key Question
426. Key Terms and Problems
427. Key Terms
428. 11.1 The IS–MP Model and the Phillips Curve Understand the role of the Phillips curve in the IS–MP model.
429. Review Questions
430. Problems and Applications
431. 11.2 The Performance of the U.S. Economy During 2007–2009 Use the IS–MP model to understand the performance of the U.S. economy during the recession of 2007–2009.
432. Review Questions
433. Problems and Applications
434. 11.3 The IS–MP Model in an Open Economy Understand the IS–MP model in an open economy.
435. Review Questions
436. Problems and Applications
437. Data Exercises
438. Chapter 12 Monetary Policy in the Short Run
439. Learning Objectives
440. Why Didn’t the Fed Avoid the Recession of 2007–2009?
441. The Federal Reserve System
442. Creation of the Federal Reserve System
443. The Structure of the Federal Reserve System
444. The Goals of Monetary Policy
445. Price Stability
446. High Employment
447. Financial Market Stability
448. Interest Rate Stability
449. The Fed’s Dual Mandate
450. Monetary Policy Tools
451. Open Market Operations
452. Discount Loans and the Lender of Last Resort
453. Reserve Requirements
454. New Monetary Policy Tools in Response to the 2007–2009 Financial Crisis
455. Monetary Policy and the IS–MP Model
456. Monetary Policy and Aggregate Expenditure
457. Using Monetary Policy to Fight a Recession
458. Using Monetary Policy to Fight Inflation
459. Using Monetary Policy to Deal with a Supply Shock
460. Solving the Problem
461. The Liquidity Trap, the Zero Lower Bound, and Alternative Channels of Monetary Policy
462. The Limitations of Monetary Policy
463. Policy Lags
464. Economic Forecasts
465. Model Uncertainty
466. Consequences of Policy Limitations
467. Solving the Problem
468. Moral Hazard
469. Central Bank Independence
470. The Independence of the U.S. Federal Reserve
471. Monetary Policy in an Open Economy
472. Monetary Policy with Floating Exchange Rates
473. Monetary Policy with a Fixed Exchange Rate
474. The Policy Trilemma for Economic Policy
475. Answering the Key Question
476. Key Terms and Problems
477. Key Terms
478. 12.1 The Federal Reserve System Understand the structure of the Federal Reserve.
479. Review Questions
480. Problems and Applications
481. 12.2 The Goals of Monetary Policy Describe the goals of monetary policy.
482. Review Questions
483. Problems and Applications
484. 12.3 Monetary Policy Tools Explain the Federal Reserve’s monetary policy tools.
485. Review Questions
486. Problems and Applications
487. 12.4 Monetary Policy and the IS–MP Model Use the IS–MP model to understand how monetary policy affects the economy in the short run.
488. Review Questions
489. Problems and Applications
490. 12.5 The Limitations of Monetary Policy Explain the challenges in using monetary policy effectively.
491. Review Questions
492. Problems and Applications
493. 12.6 Central Bank Independence Evaluate the arguments for and against central bank independence.
494. Review Questions
495. Problems and Applications
496. 12.7 Monetary Policy in an Open Economy Explain how monetary policy operates in an open economy.
497. Review Questions
498. Problems and Applications
499. Data Exercises
500. Chapter 13 Fiscal Policy in the Short Run
501. Learning Objectives
502. Driving Toward a “Fiscal Cliff”
503. The Goals and Tools of Fiscal Policy
504. Who Conducts Fiscal Policy?
505. Traditional Tools of Fiscal Policy
506. Budget Deficits, Discretionary Fiscal Policy, and Automatic Stabilizers
507. Discretionary Fiscal Policy and Automatic Stabilizers
508. The Budget Deficit and the Budget Surplus
509. The Deficit and the Debt
510. Is the Federal Debt a Problem?
511. The Short-Run Effects of Fiscal Policy
512. Fiscal Policy and the IS Curve
513. Using Discretionary Fiscal Policy to Fight a Recession
514. Automatic Stabilizers
515. Solving the Problem
516. Personal Income Tax Rates and the Multiplier
517. Solving the Problem
518. The Effects of Changes in Tax Rates on Potential GDP
519. The Limitations of Fiscal Policy
520. Policy Lags
521. Economic Forecasts
522. The Uncertainty of Economic Models
523. Crowding Out and Forward-Looking Households
524. When Will Fiscal Multipliers Be Large?
525. Moral Hazard
526. Consequences of Policy Limitations
527. Evaluating the American Recovery and Reinvestment Act
528. Fiscal Policy in an Open Economy
529. Fiscal Policy with Floating Exchange Rates
530. Fiscal Policy with a Fixed Exchange Rate
531. Answering the Key Question
532. Key Terms and Problems
533. Key Terms
534. 13.1 The Goals and Tools of Fiscal Policy Explain the goals and tools of fiscal policy.
535. Review Questions
536. Problems and Applications
537. 13.2 Budget Deficits, Discretionary Fiscal Policy, and Automatic Stabilizers Distinguish between automatic stabilizers and discretionary fiscal policy and understand how the budget deficit is measured.
538. Review Questions
539. Problems and Applications
540. 13.3 The Short-Run Effects of Fiscal Policy Use the IS–MP model to understand how fiscal policy affects the economy in the short run.
541. Review Questions
542. Problems and Applications
543. 13.4 The Limitations of Fiscal Policy Use the IS–MP model to explain the challenges of using fiscal policy effectively.
544. Review Questions
545. Problems and Applications
546. 13.5 Fiscal Policy in an Open Economy Explain how fiscal policy operates in an open economy.
547. Review Questions
548. Problems and Applications
549. Data Exercises
550. Chapter 14 Aggregate Demand, Aggregate Supply, and Monetary Policy
551. Learning Objectives
552. Did the Fed Create and Then Kill the Great Moderation?
553. Aggregate Demand Revisited
554. The Aggregate Demand Curve
555. Shifts of the Aggregate Demand Curve
556. When Are Shifts to the Aggregate Demand Curve Permanent?
557. Aggregate Supply and the Phillips Curve
558. Shifts in the Aggregate Supply Curve
559. The Aggregate Demand and Aggregate Supply Model
560. Equilibrium in the AD–AS Model
561. The Effects of a Supply Shock
562. Permanent Demand Shocks: Changes in the Central Bank Reaction Function
563. Temporary Demand Shocks: Changes in Aggregate Expenditure
564. Solving the Problem
565. Rational Expectations and Policy Ineffectiveness
566. Rational Expectations and Anticipated Policy Changes
567. Rational Expectations and Unanticipated Policy Changes
568. Rational Expectations and Demand Shocks
569. Are Anticipated and Credible Policy Changes Actually Ineffective?
570. Monetary Policy: Rules Versus Discretion
571. The Taylor Rule
572. The Taylor Rule and the Real Interest Rate
573. The Case for Discretion
574. The Case for Rules
575. Answering the Key Question
576. Key Terms and Problems
577. Key Terms
578. 14.1 Aggregate Demand Revisited Understand how aggregate demand is determined.
579. Review Questions
580. Problems and Applications
581. 14.2 Aggregate Supply and the Phillips Curve Explain the relationship between aggregate supply and the Phillips curve.
582. Review Questions
583. Problems and Applications
584. 14.3 The Aggregate Demand and Aggregate Supply Model Use the aggregate demand and aggregate supply model to analyze macroeconomic conditions.
585. Review Questions
586. Problems and Applications
587. 14.4 Rational Expectations and Policy Ineffectiveness Discuss the implications of rational expectations for macroeconomic policymaking.
588. Review Questions
589. Problems and Applications
590. 14.5 Monetary Policy: Rules Versus Discretion Discuss the pros and cons of the central bank’s operating under policy rules rather than using discretionary policy.
591. Review Questions
592. Problems and Applications
593. Data Exercises
594. Chapter 15 Fiscal Policy and the Government Budget in the Long Run
595. Learning Objectives
596. Drowning in a Sea of Debt?
597. Debt and Deficits in Historical Perspective
598. The Government Budget Constraint
599. The Relationship Between the Deficit and the National Debt
600. Gross Federal Debt Versus Debt Held by the Public
601. The Debt-to-GDP Ratio
602. Composition of Federal Government Revenue and Expenditure
603. Federal Government Expenditure
604. The Sustainability of Fiscal Policy
605. Expressing the Deficit as a Percentage of GDP
606. When Is Fiscal Policy Sustainable?
607. Solving the Problem
608. The Effects of Budget Deficits in the Long Run
609. The Budget Deficit and Crowding Out
610. The Conventional View: Crowding Out Private Investment
611. Ricardian Equivalence
612. The Fiscal Challenges Facing the United States
613. Projections of Federal Government Revenue and Expenditure
614. Will the United States Pay Off Its Debt?
615. Policy Options
616. Answering the Key Question
617. Key Terms and Problems
618. Key Terms
619. 15.1 Debt and Deficits in Historical Perspective Discuss basic facts about the U.S. government’s fiscal situation.
620. Review Questions
621. Problems and Applications
622. 15.2 The Sustainability of Fiscal Policy Explain when fiscal policy is sustainable and when it is not sustainable.
623. Review Questions
624. Problems and Applications
625. 15.3 The Effects of Budget Deficits in the Long Run Understand how fiscal policy affects the economy in the long run.
626. Review Questions
627. Problems and Applications
628. 15.4 The Fiscal Challenges Facing the United States Explain the fiscal challenges facing the United States.
629. Review Questions
630. Problems and Applications
631. Data Exercises
632. Chapter 16 Consumption and Investment
633. Learning Objectives
634. Are All Tax Cuts Created Equal?
635. The Macroeconomic Implications of Microeconomic Decision Making: Intertemporal Choice
636. Households and Firms are Forward Thinking
637. An Important Difference Between Consumption and Investment
638. Factors That Determine Consumption
639. Consumption and GDP
640. The Intertemporal Budget Constraint and Consumption Smoothing
641. Two Theories of Consumption Smoothing
642. Permanent Versus Transitory Changes in Income
643. Consumption and the Real Interest Rate
644. Housing Wealth and Consumption
645. How Policy Affects Consumption
646. Solving the Problem
647. Credit Rationing of Households
648. Precautionary Saving
649. Tax Incentives and Saving
650. Factors That Determine Private Investment
651. The Investment Decisions of Firms
652. Corporate Taxes and the Desired Capital Stock
653. From the Desired Capital Stock to Investment
654. Solving the Problem
655. Tobin’s q: Another Framework for Explaining Investment
656. Credit Rationing and the Financial Accelerator
657. Uncertainty and Irreversible Investment
658. Answering the Key Question
659. Key Terms and Problems
660. Key Terms
661. 16.1 The Macroeconomic Implications of Microeconomic Decision Making: Intertemporal Choice Discuss the macroeconomic implications of microeconomic decision making by households and firms.
662. Review Questions
663. Problems and Applications
664. 16.2 Factors That Determine Consumption Explain the determinants of personal consumption.
665. Review Questions
666. Problems and Applications
667. 16.3 Factors That Determine Private Investment Explain the determinants of private investment.
668. Review Questions
669. Problems and Applications
670. Data Exercises
671. Glossary
672. Index
673. Key Symbols and Abbreviations
674. Equations