麻省理工学院-宏观经济学原理-测试题-及-答案.pdf

14.02 Principles of Macroeconomics Problem Set # 4, Questions Posted during Week # 8, due on the last day of Week # 9. N ame: _________________________________________ Table, only for correctors 1 2 3 4 5 Total Part I Part II Part III Total 1 PART I. TRUE/FALSE/UNCERTAIN (7 points each, 35 points total) 1. As in microeconomics, the AD-curve is downward sloping since consumers buy less goods when they are expensive. 2. Even with the unemployment rate in its natural level, inflation rate can increase due to higher expected inflation. 3. Wage indexation decreases the impact of changes in unemployment rate on the inflation rate. 4. Expansionary fiscal policy has a positive effect on output, consumption and investment in the short run. However, it has no effect in the medium run since all the components of aggregate demand go back to its previous level. 5. Expansionary monetary policy has a positive effect on output, consump- tion and investment in the short run. However, it has no effect in the medium run since all the components of the aggregate demand go back to its previous level. 2 PART II: THE AS-AD MODEL (7 points each, 35 points total) The labor market is characterized by the following equations: W/P e = 10 −Z −10u Y = N Z = 9 L = 600 µ = 1 where Z stands for unemployment benefits, µ for the mark-up margin, P e for the expected price level, L for the total labor force, N for employment level and u for unemployment rate. The money market is characterized by the following equations: M d = 5Y −1200i P M s = 10000 And the goods market is characterized by the following equ