MACROECONOMICS PROFESSOR LANE
CHAPTER 6 UNEMPLOYMENT IN CLASS EXERCISE JULY 27,2015
1. (1) Frictional unemployment goes up when
A student quits work to return to school at the end of the summer.
A corporation transfers a worker to another city.
MACROECONOMICS PROFESSOR LANE
CHAPTER 7 INFLATION, IN CLASS EXERCISE (7/29/2015)
1. (1) Inflation is
A rise in the price of every good but not any service.
An increase in relative prices of all goods and services.
A situation in which purchasing po
6 December 2015
Problem Set 6
1a. Which country has an absolute advantage in production of shirts? Very briefly explain
Which country has an absolute advantage in production of rice? Very briefly explain why.
Assignment 4: Question 1
In 1946, the U.S. government established the Employment Act, which committed the
government to establish full employment as a central goal of government policy. But given that
Economics 104: Macroeconomics
Introduction to Macroeconomics
Macroeconomics: The branch of economics that examines the economic behavior of aggregates
(income, employment, output) on a national scale
Positive economics: Economic approach to economics th
Due on March 31, Friday
1. What are the three tools the Fed can use to change the money supply? Briefly describe
the Fed can use each of these tools to either increase or decrease the money supply.
The fed can in
Exam is on chapters 1,5,6,7,8,9
Econ 104: Introduction to Macroeconomics Midterm Study Questions
The questions below are to help you make sure you know/understand the material.
1. What is economics? What is macroeconomics?
Study of how/why people make the
Money is a medium of exchange or means of payment
Store of value: an asset that can be stored to transport purchasing power
from on time period to another
Liquidity property of money: property or money that makes it a good unit
of exchange and
Due on March 3, Friday
(please turn in the assignments to your TA at the beginning of your discussion sections)
1. Go to the BEA web site (www.bea.gov) and find out the real GDP, nominal GDP and the
growth rate of GD
Y on the aggregate supply curve is not fixed
It moves overtime
The effect of an interest rate increase on planned aggregate expenditure and
An increase in the interest rate from 3% to 6% lowers planned aggregate
Fiscal Policy: The governments spending and taxing policies.
Monetary Policy: The behavior of the Federal Reserve concerning the nations money
Discretionary Fiscal Policy: Change sin taxes or spending that are a result of delibe
When expansionary fiscal policy works well there is an increase in output with a small
increase in price levels
If expansionary fiscal policy fails, the output multiplier is close to zero
Output is initially close to capacity and attempts to increase it
ECON 104-02, -06
Exam #2 Study Guide
The second exam will be from 7:00 9:00 p.m. on Monday, November 14th in multiple
locations (see Exam #2 Logistics for the details). This exam will include short answer
questions and problem solving. Short ans
only used in the official economy. The surplus of money held as cash is only
used in the underground economy. This surplus is calculated as the difference
between the actual amount of cash money in circulation and the amount that one
would expect to be in
en de Nationale rekeningen, Central Bureau of Statistics, Voorburg (in Dutch).
Willard, J.C. (1989), The Underground Economy in National Accounts, in Guidebook to Statistics on the Hidden Economy, United Nations, 1992: pp. 79-103; also
in conomie et Stati
Goskomstat of Russia, Moscow (in Russian). Luttikhuizen, R., and B. Kazemier
(2000), A Systematic Approach to the Hidden and Informal Activities, Proceedings
of the International Conference on Establishment Surveys, Buffalo, 2000, Statistics
statistical co-operation with the New Independent Staes and Mongolia,
Luxembourg, May 1999, Eurostat, Luxembourg. Eurostat (1999c), Handbook on
Information Technologies for a National Statistical Office, Tacis Task Force Report,
Eurostat, Luxembourg. Meas
Economy in Hungary 1998, Hungarian Central Statistical Office, Budapest.
Isachsen, A.J., and S. Strom (1989), The Hidden Economy in Norway with Special
Emphasis on the Hidden Labor Market in Feige (1989): pp. 251-266. IvanUngureanu, C., and C. Pop (1996).
change in steps rather than move smoothly with production. Artificial price
levels further reduce the relationship between industrial production and
electricity consumption. At this time in the Russian Federation, electricity prices
were artificially low,
measurement of the underground economy. 12.5. Concluding Remarks 12.31. The
need for models in compiling national accounts is not in dispute. Models often
underpin indirect methods used in compilation, providing estimates when basic
data are not available
(1983), which draws on a wide range of explanatory variables. The size of the
underground economy is estimated on the basis of developments in the variables
that, on the one hand, affect the size and the growth of underground production,
and, on the other
macro-models can ever do. It is, however, incumbent on national accountants to
inform users of the extent of the non-observed economy i.e., how much
economic activity escapes direct measurement and the extent of the nonmeasured economy i.e., how much of t
ICLS/15/III, International Labour Organisation,Geneva. International Labour
Organisation (1993), Highlights of the conference and text of the three resolutions
adopted, Fifteenth International Conference of Labour Statisticians, Geneva,
January 1993, in B
. 203 Annex 2.
. 205 Annex 3. Data Requirements and
Sources . 226 3.1.
Outputs of Basic Data Collection Programme by
Use . 226 3.2. Minimal Data
Requirements and Sources for Annual National Accounts.
228 3.3. Minimal Data Requirements and Sourc
interest and inflation rates and peoples perception of the likelihood of being
robbed. Increased facilities for and use of cheques and credit cards can also be
expected to have had an impact. 12.12. Cramer also criticised Feiges estimate of
the income vel
Assessment in National Accounts, document CPNB-296, Eurostat. GoldschmidtClermont, L. (1987), Economic Evaluations of Unpaid Household Work: Africa,
Asia, Latin America and Oceania, in Women, Work and Development No. 14,
International Labour Organisation,
measuring illegal activity for the UK national accounts, Economic Trends No. 536,
July 1998. Rey G. (1992), Analisi economica ed evidenza empirica dellattivita
illegale in Italia, Quaderni di ricerca, Istat, Rome (in Italian). Chapter 10 Central
Washington. Eurostat (1995), European system of accounts, ISBN 92-827-7954-8,
Eurostat, Luxembourg. International Labour Organization (1993), Resolution
concerning economically active population, employment, unemployment and
underemployment, 13th Internat