上海财经大学 中级宏观经济学期末考试题.pdf

Economics 302 ìOn my honor, I pledge that I have neither given University of Virginia nor received help on this test.î Section 3 Signature: Name (print): F!#$ E%# 1. (5 points) In a diagram, show how people in a Robinson Crusoe economy respond to an increase in the production function that creates a pure wealth effect, but not a substitution effect. What do you have to assume about consumption and leisure to answer this question? 2. (5 points) If the real interest rate increases what happens to desired saving at the household level? If we observe an increase in the real interest, what will happen to aggregate saving? Would your answers be different for the models with and without capital? 1 3. (5 points) Between the end of World War II and the mid 1980s, the velocity of money in the United States was rising. What might explain this observation? 4. (10 points) Consider the market-clearing model without capital, and use it to discuss the following question about an agricultural economy. Suppose, because of weather con- ditions, there is a temporary drought expected to last for a year or two. What are your predictions for the changes in output, consumption, work effort, the real interest rate, and real wages in the short-run? What will happen to the price level? Illustrate your answer with diagrams. 2 5. (5 points) Why does the marginal product of labor schedule represent a firmís labor demand curve? 6. (10 points) In the 1980s, the Brazilian government suffered through a fiscal crisis. It wasnít able to raise enough tax revenue to pay for its expenditure (purchases of goods and services and