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中级宏观经济学作业四

Chapter 10~111.Suppose there is an increase in the number of ATM machines in service. What arethe effects of this innovation on the demand for money and on the price level?2.The issuers of credit cards demand payment every two weeks instead of everymonth. Determine the effects on money demand and on price level. Explain your results.3.Suppose that the preferences of the representative household change in such a waythat the worker in the household becomes more willing to work, in that he or she requires less compensation in terms of consumption goods to supply an extra unit of labor, given any consumption-leisure bundle.a.Now suppose that the monetary authority wishes to stabilize the pricelevel (hold the price level constant). How would the money supplychange in response to the change in preference in order to accomplishthis?b.Suppose there is a temporary increase in total productivity, and themonetary authority wishes to stabilize the price level. What would be theeffects of the increase in the total factor productivity on the moneysupply?4.Suppose that the quantity of government purchases increases permanently, andthat this increase in government spending is financed by an increase in the growth rate x of the money supply. That is, the increase in government spending is financed through seignorage. Determine the effects on current equilibrium inflation, employment, output, the real wage, the real interest rate, the nominal interest rate. Explain your results.Chapter 151.Suppose that the central bank wishes to reduce the price level, and announces thatit will reduce the money supply to accomplish this. Use the money surprise model to answer the following questions:a.Suppose the public does not believe that the central bank is serious aboutreducing the price level. What happens to real aggregate variables andthe price level?b.Suppose, alternatively, that the public believes the central bankannouncement. What happens to real variables and the price level now?pare your results in part (a) and part (b). In which case does theprice level change more for a given reduction in the money supply?What do you think a central bank can do to make it policyannouncements more credible?2.In the money surprise model, compare the performance of the economies in twocountries that are identical in all respects but one: in country a the money supply is highly variable, while in country b there is little variability in money supply. Fora given surprise increase in the money supply, determine with the aid of diagramshow the economy in country a will respond relative to the economy in country b.Explain your results.Chapter 161.Suppose nominal wages are negotiated between the representative firm and therepresentative consumer to be perfectly indexed to the price level; that is, if the price level rise by x%, then the nominal wage will increase by x%. This implies that the real wage will be fixed over the course of the contract.a.Determine the aggregate supply curve when the real wage is fixed.b.Suppose initially that the supply equals demand in the labour market. Then,assume that the money supply increases. Determine the effects on real output, employment, the real interest rate, the real wage, the nominal wage, and Keynesian unemployment, and explain your results.c.Now, suppose again that supply initially equals demand in the labour market,and that total factor productivity falls. Determine the effects on real output, employment, the real interest rate, the real wage, the nominal wage, and Keynesian unemployment. Explain your results and any differences from part(b).2.In the Keynesian sticky wage model, suppose that supply is initially equal todemand in the labor market, and that there is a negative shock to the demand for investment goods, because the firm anticipates lower total factor productivity in the future.a.Determine the effects on real output, the real interest rate, the price level,employment, and the real wage, if the government did nothing in response to the shock.b.Determine the effects if monetary policy is used to stabilize the economy, withthe goal of the monetary authority being zero Keynesian unemployment.c.Determine the effects if government spending is used to stabilize the economy,with the goal of the fiscal authority being zero Keynesian unemployment.d.Explain and comment on the differences in your results among parts (a), (b)and (c).。

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