Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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Question
Chapter 11, Problem 2E
(a)
To determine
The short-run effect of the decision to reduce the real interest rate below the marginal product of capital.
(b)
To determine
The short-run effect of the pessimistic attitude of consumers.
(c)
To determine
The short-run effect of an improvement in information technology.
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The equations below describe the aggregate demand of an economy. There are neither a flow of goods and services nor capital across borders of this country.
Y=C +I +G………. (1)
C=Co+C(Y^d)……. (2)
Y^d= Y-T…………. (3)
T=t(Y) ……………. (4)
I=Io+I(r)………… (5)
G=Go……………... (6)
M=PL(r,Y)……… (7)
where Y is gross real domestic product, C is aggregate consumption expenditure by households, I is aggregate investment expenditure by firms, is government purchases of goods and services, Y^d is disposable personal income, and T is total income tax payments to government by…
The equations below describe the aggregate demand of an economy. There are neither a flow of goods and services nor capital across borders of this country.
Y=C +I +G………. (1)
C=Co+C(Y^d)……. (2)
Y^d= Y-T…………. (3)
T=t(Y) ……………. (4)
I=Io+I(r)………… (5)
G=Go……………... (6)
M=PL(r,Y)……… (7)
where Y is gross real domestic product, C is aggregate consumption expenditure by households, I is aggregate investment expenditure by firms, is government purchases of goods and services, Y^d is disposable personal income, and T is total income tax payments to government by…
Real-Time Data Analysis Exercise*
Price level
*Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of Saint Louis.
Using data from the St. Louis Federal Reserve, analyze the effects of a positive supply shock.
AS
The U.S. economy experienced a supply shock with the spread of information communication technology and the Internet
after 1995.
Click the following link to view the Personal Consumption Expenditure price index data from FRED.
Using the Series ID PCEPI, plot the the inflation rate from 1982 to 2007 as the percentage change in the Personal
p.
Consumption Expenditure price index from the same month in the previous year.
The inflation rate for November of 2021 (shown as 2021 - 11 - 01 in FRED) was
decimal places.)
%. (Round your answer to two
The inflation rate for June of 1978 (shown as 1978 – 06 -01 in FRED) was
%. (Round your answer to two decimal
places.)
AD
Y1
Output
Chapter 11 Solutions
Macroeconomics (Fourth Edition)
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