中国矿业大学管理学院宏观经济学教材答案第十六章.docVIP

CHAPTER 16 Inflation, Unemployment, and Federal Reserve Policy Answers to End-of-Chapter Problems and Applications 1. a. The tax cuts are fiscal policy and the interest-rate cuts are monetary policy. b. The tax cuts and interest-rate cuts both stimulate aggregate demand which increases real GDP and reduces unemployment. Tax cuts can also reduce unemployment by increasing the incentive to work. 2. a. Point B on the Phillips curve graph represents the same economic situation as point A on the aggregate demand and aggregate supply graph. b. Point B on the Phillips curve graph represents the same economic situation as point B on the aggregate demand and aggregate supply graph. c. Point A on the Phillips curve graph represents the same economic situation as point C on the aggregate demand and aggregate supply graph. 3. The AD-AS model and the Phillips curve are different ways of illustrating the same macroeconomic events, but the Phillips curve has an advantage when we want to analyze explicitly changes in the inflation rate and the unemployment rate. 4. In the 1960s the Phillips curve was widely viewed as a stable relationship representing a policy menu of choices between low inflation and high unemployment, and high inflation and low unemployment. Today, the Phillips curve is not viewed as a policy menu and in the long run there is no tradeoff between inflation and unemployment. 5. Since there is no tradeoff in the long run between unemployment and inflation, Stein’s statement is correct. Most economists in 1968 believed that there was a long-run tradeoff between unemployment and inflation, so they would not have agreed with Stein’s statement. 6. 7. If prices rise faster than nominal wages, then real wages fall. Everything else equal, a fall in real wages will reduce unemployment. 8. The Fed does not want a higher rate of inflation to persist, because if it does, the Phillips curve may shift up, which will make the short-run tradeoff b