Economics 146
Spring 2013
Midterm examAnswer key
1. (i) An exogenous increase in housing prices boosts C0 in our macroeconomic model.
Also, a tax cut boosts after-tax income and hence consumption demand. Thus we have a
positive direct shock to aggregate d
Fiscal and Monetary Policies and Stabilization: Empirical Issues
Introduction
In this module we will study various empirical aspects of fiscal and monetary policies.
The first three sections will include an examination of the empirical relationship betwee
Economics 146
Spring 2014
Homework #2
1. What direction does the IS curve shift if output, y, rises?
2. Based on our model of consumption demand, what happens to consumption when the
price level, P, changes? Do people increase current consumption when the
Economics 146, Homework #1
Your task will be to download macroeconomic data into Excel and then to plot it,
describe it, and perform some simple statistical calculations with it; you will be graded
only on the statistical calculations. The task is straigh
Business Cycles: Introduction, Characteristics, and Facts
Introduction
Although the U.S. economy has exhibited growth in real GDP of about 2% to 3% per
year on average over the last century, fluctuations in economic activity around the trend
are common. I
Economics 146, Homework #1
Your task will be to download macroeconomic data into Excel and then to plot it,
describe it, and perform some simple statistical calculations with it; you will be graded
only on the statistical calculations. The task is straigh
1
The Long Depression of 1873-1879: An Austrian Examination
Patrick Newman
Rutgers University
patchnew@rutgers.edu
Abstract:
This paper analyzes the period 1860-1880 in American economic history from an
Austrian perspective. The post-Civil War boom, the P
Theory of Stabilization Policy
1. The use of monetary and fiscal policies to moderate the business cycle is called
macroeconomic stabilization policy. Because these policies shift the aggregate demand
curve, their use in smoothing fluctuations is also cal
Economics 146, Spring 2014
Homework #3
1. Use the Friedman model to determine the variance of Z, V(Z), if V(X) = 400 and V(P)
= 225 and if the correlation coefficient between X and P is -1? What if it is -1/2? What
if it is 0?
2. In Friedmans model, assum
Macroeconomic Models of Business Cycles
Aggregate Demand
Market in New Goods and Services: The IS Curve
1. Current real consumption of domestically-produced or foreign-produced goods and
services depends on current real after-tax income and on expected fu
Business Cycles: Definition and Facts
In 1959, Arthur Burnsformer chairman of the Federal Reserve Board and a towering
figure in the analysis of business cyclespredicted, if not the end of business cycles in
the United States, at least that the business c
Theory of Stabilization Policy
1. The use of monetary and fiscal policies to moderate the business cycle is called
macroeconomic stabilization policy. Because these policies shift the aggregate demand
curve, their use in smoothing fluctuations is also cal
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Econ132(W2015):MidTermExam2[81PointsTotal]
A.FillInTheBlank(MayRequireMoreThanOneWord)[20Points]
1.TheUnitedStatesgetsapproximately_%ofitselectricpowerfromnuclearreactors.
2.Abarrelofoilisrefinedintoseveraldifferentp