Principles of Macroeconomics midterm 2

Principles of Macroeconomics midterm 2 - Berkeley College...

  • Test Prep
  • HighnessDangerWildcat5833
  • 6
  • 100% (5) 5 out of 5 people found this document helpful

Info icon This preview shows pages 1–3. Sign up to view the full content.

Berkeley College Instructor: Carlo Auguste Take home test 2 Student: Min-Hsuan Hsieh Macroeconomics Type all answers I. Current event questions (10 points) a. Summarize the history (creation) of the Central Bank of the US Central Bank established in the latter half of the 17th century, formed in the early 19th century, it generates economic context as follows: (1) The rapid development of the commodity economy: in the early 18th century, Western countries began a rapid development and rapid expansion of the industrial revolution, the social productivity of the commodity economy, prompting monetary operations increasingly common and increasingly profitable, thereby producing a conduct of monetary wealth desire to control. (2) The capitalist economic crisis frequent: economy its own inherent contradictions of capitalism would inevitably lead to an ongoing economic crisis. To face the situation at that time, Bourgeois Government was starting to look for the cause from the monetary system, attempted to control through the issuing bank notes, to avoid and save frequent economic crises. (3) Credit universal and centralized: capitalist industrial revolution prompted the unprecedented increase productivity, productivity and capitalism credit industry to flourish. Main performance in the banking sector continues to increase; the second was gradually moving towards a joint, centralized and monopolized the banking sector. b. Give the full name of and time in office for the current chairman of the Federal Reserve Bank and his predecessor Ben S. Bernanke is the current Chairman of the Board of Governors of the Federal Reserve System, and he started a second term on February 1, 2010. Dr. Bernanke also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body. He originally took office as Chairman on February 1, 2006, when he also started a 14-year term as a member of the Board. His second term as Chairman ends January 31, 2014, and his term as a Board member ends January 31, 2020. His predecessor is Alan Greenspan and his time in office is from Aug. 11, 1987-Jan. 31, 2006, and he also served as Chairman Pro Tempore from March 3, 1996, to June 20, 1996. II. Theoretical questions (60 points) 1. Define macroeconomics and explain its roots (From the Greek prefix makro- meaning "large" and economics) Macroeconomics examines economy-wide phenomena such as changes in unemployment, national income, rate of growth, gross domestic product, inflation and price levels. It deals with the performance structure, and behavior of national or regional economy as a
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

whole. The depression in the 1930 of the 20th century raised a lot of thinking about macroeconomic issues. Before 1930, there was no such field as macroeconomics. The only problem of macroeconomics was interest rates. The classical or market clearing models were the models applied by economists to economy wide problems. Classical economists believed that the recession were self-correcting. When this model could
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern