Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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Question
Chapter 8, Problem 15E
(a)
To determine
Calculate the money circulation and size of monetary base in 1981.
(b)
To determine
The revenue from inflation tax during 1980‑81 and its fraction of GDP in 1981.
(c)
To determine
Reason for calculations in (a) and (b) for 1981.
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Search for the “World Economic Outlook Database” on the internet and locate the most recent version. Use this database to select inflation data (units of percentage change) for Germany, Japan, and the United States for the period 1990 to 2010. Construct a table of annual inflation rates for these countries. Now construct a graph using annual inflation rates on the vertical axis and the year on the horizontal axis. Plot the annual inflation rates from your table in three separate lines on the same graph. How would you compare the experiences of these three countries based on your graph?
The first table displays Congressional Budget Office forecasts made in
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answer the questions.
Year: 2015 2016 2017 2018 2019 2020
Deficit
forecast
(in
billions
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dollars)
-468-467-489-540-652-739
Fiscal Budget
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2015 -439
2016 -585
-86
-76
-53
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53
2020 -1,074 87
2017-665
2018 -779
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2019-984
+
Structural
Component
-353
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Chapter 8 Solutions
Macroeconomics (Fourth Edition)
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