中宏作业和试题finalanswer

1、VerAMultiple Choi:Answer:Answer:BCAnswer:BAnswer:Answer:D.BAnswer:AAnswer:Answer:CBAnswer:AAnswer:Answer:DDAnswer: Answer:Answer:B DDAnswer:Answer: Answer:DB CAnswer:D1. (29 pos) (You need to explain how you derive your answers) After the market-orientedeconomicreform,the Chiernmensreducedernment in

2、vestment. Consider this reduction as a temporary one.（你需要解释你如何得出你的）的市场经济后，中国开始减少投资。假设这个减少是短期的。Supe the priare flexible. Determine the effects of the temporary fiscal contraction on current output, investment, and the current price level. (3 po)假设价格是非常灵活的。 这个短期的财政紧缩对现期的产出，投资，以及价格水平样的影响？Answer:The opi

3、te of this graph,t is the economy changes from se 2 to se 1.Ye , re, I, Ne , we .Change in price is ambiguous. It increases if the Md is more sensitive to the change in Y.Now, supe the nominal wage is sticky and the supply was initially equal to demandhe labor market before the economic reform. Besi

4、des the change inernment expenditure after the economic reform, we also saw a huge increase in labor supply resulted from the migration of labor force from the rural area to the urban area. Supe the effect of the labor migration on labor supply dominated the effect of the change inernment expenditur

5、e.现在假设名义工资是刚性的，而且在前劳动市场出清。后，除了财政支出的减少，同时看到由于劳动力的放松，有大量的剩余劳动力从农村地区转移到城市，城市面对了劳动力供给的大量增加。假设劳动力转移对劳动供给的影响比财政支出减少的影响要大的多。What are the effects of the economic reform on real output, investment, theprice level, employment, the real wage, and Keynesian unemployment level. (8 pos)这个经济对真实的产出，投资，价格，就业水平，真实工资，

6、以及失业率的影响是什么？Answer:The opite of the following graph. In another word, the economy moves from se 0 to se 2, then to se 1.Noticet the migration only increases labor supply and the unemployment level. It does not affect anything else.The fiscal contraction leads to Ye , re, I, Ne , we , P and unemploym

7、ent , So, the fiscal contraction actually reduthe unemployment by reducing the labor supply.N(r0)(c) The business cycle facts include t consumption, investment, employment, and real wage are all procyclical and price level is countercyclical. What does this say about the ability of ernment spending

8、shocks to explain business cycles? (2 po s)经济周期的普遍规律包括消费，投资，就业，以及真实工资的顺周期，以及价格的反周期。那么从这个例子中，对于支出的变化对于经济周期的影响可以做何评论？Answer:If the sticky wage amption is correct, it meanst we should see procyclical price, countercyclical wage, and countercyclical investment. These are obviously not consistent with th

9、e business cycle. This means changes inernment spending are not good explanations feneral business cycle. However, it can still be the main reason for a specific business cycle.Now consider a small open economy. (16 pos)现在考虑一个开放经济。(d) Consider the case where priare all flexible and money supply is f

10、ixed. What are the effects of the temporary fiscal contraction on current account surplus, real output, investment, and the price level. Explain your results. (3 pos)先考虑价格都是灵活的情况，同时假设货币供给固定。那么这个短暂的财政紧缩对 CA，对产出，投资，以及价格水平如何影响。Answer:The economy starts at se 2, and gets to se 1 after the shock.The real

11、 economy is the same as the onehe closed economy, exceptt now r=r*, does not change, and CA increasesYe , CA, re does not change, I, P (since r does not change).Define the nominal exchange rate and real exchange rate. What does Purchasing arity imply for nominal and real exchange rate. (3 pos)定义名义汇率

12、，实际汇率。力平价理论对于名义汇率和实际汇率样的含义？Answer:nominal exchange rate (e): the relative price of foreign currencyerms of domestic currencyreal exchange rate: the relative price of foreign goodserms of domestic goodsThe purchasingarity (PPP) relationship, or say, “the law of one price” meansP=eP*So we have the rea

13、l exchange rate, ereal = 1, and the nominal exchange rate: e=P/P*.Sup e Purchasingarity holds, based on your definition of nominal exchange rate, how does the temporary fiscal contraction affect the real output and the value of domestic currency when we have a flexible exchange rate system and the p

14、riare all flexible? (2 pos)假设力平价理论成立。基于你的名义汇率的定义，分析如果有浮动汇率系统，这个短暂的财政紧缩对真实产出，本国货币的影响。Answer:The real economy is the same as part (e) because we have classical dichotomy. Flexible exchange rate system:e2 increases to e1, means depretion of domestic currency. The domestic price goes up.12(g) How do the

15、 results in part (f) change if we have a fixed exchange rate system instead? (2 pos)实现的是固定汇率制，那么（f）部分的结论如何变化？Fixed exchange rate system:e keeps the same, but Ms declines from M2 to M1. The domestic price keeps the same.12(h) Now consider the Mundell-Fleming m. What are the effects of the temporary f

16、iscal contraction on the real output and the value of domestic currency under a flexible exchange rate system? What are the effects under a fixed exchange rate system? You can change your definition of the exchange rate but you need to be explicit about your definition. (6 pos)现在考虑 Mundell-Fleming 模

17、型。你可以改变关于汇率的定义，但是必须陈述清楚。分别在固定汇率和浮动汇率的情况下，这个短期的财政紧缩对产出和本国货币的影响。Now we do nove classical dichotomy. We use the IS-LM framework to determine Y and e together.Change the definition of exchange rate. Nominal exchange rate = the relative price of domestic currencyerms of foreign currency Real exchange rat

18、e = the relative price of domestic goodserms of foreign goodsFlexible exchange rate system:2 declines to 1, means depretion of domestic currency. The domestic price is fixedhe short run. No changes. Y keeps fixed (the reason ist NX increases to counterbalance the change in G).LM *21YY1Fixed exchange

19、 rate system:e keeps the same, but Ms declines from M2 to M1. The domestic price keeps the same. Y declines from Y2 to Y1 (G crowds out NX).LM *LM *12IS *2IS *1YY1Y21IS *2IS *12. (17 pos) Consider the Solow M. Supe the production function is Y = zKaN1-a. Here, K is the capital stock and N is the num

20、ber of workert is amed to be the same as population. The depretion rate is x, and the population grows at rate p. Ame theernment purchases G units of consumption goods in each period, where G=gN, and g isitive constant. The ernment finanits purchases through lump-sum taxes on consumers, where T deno

21、tes total taxes, and theernment budget is balanced each period, so G=T. Consumers consume a constant fraction of disablee,t is C=(1-s)(Y-T), where s is the saving rate, with 0s1.考虑Solow m 。假设生产函数是Y = zKaN1-a。 其中K是资本存量，N是劳动力的数量，假设就等于 数。资本折旧率是x, 以p的速度增长。假设 每期 G 的消费品。G=gN, g 是一个正的常数。 用 T来支持 支出。同时 每期的 要

22、平衡，G=T。消费者消费可支配收入的一个固定比例，即C=(1-s)(Y-T), 其中 s 是储蓄率, with 0s1. TDerive the per-workroduction function (2 pos)导出每个工人的生产函数。Write the production function as Y=zF(K,N). Since this production function is constant return to scale, (the sum of theers is 1). We have the per worker production function is zf(k)

23、.Here it is zka.Derive the equationt determines the dynamic movement of per-worker capital stock. (3 pos)导出决定资本存量的动态变化过程的式子。Y = C + I + GI=s(Y-G)=s(zF(K, N)-G)K: Investment causes it to grow, depretion causes it to shrinkK = I+(1-d)K = s(zF(K, N)-gN)+(1-d)Kd: the rate of depredicationk = K/N = K/N *

24、 N/N= szf(k) - sg + (1-d)k/(1+n)(1)Change in per-worker capital stock:k = k k= szf(k)-sg (d+n)k/(1+n) (2)Find the steady se of per-worker capital stock, denoted as k*, using the graph. (3 pos)用图形分析找到均衡的资本，标为 k*。 Set k=0,Investment(n+d)k+sgand depretionszf(k)k*Capital perworker, kOrInvestmentand(n+d)

25、 kdepretionszf(k)- sgk*Capital per worker, k(d) If there are two steady s es, ignore the steady s e with low k*. Determine the effects of an increase in g on capital per worker and on output per worker in the steady s e. (2 po s)如果有两个均衡，忽略那个有着低水平的k*的稳态。分析如果g增加，稳态的资本存量及产出怎么变化。When g increases, k* , y

26、*.What are the effects of g on the growth rates of aggregate output and aggregate consumption? (1 po )g 对总产出和总消费的增长的影响又如何呢？he short run, it reduthe growth rate of C and Y.he long run, C and Y grow are population growth rate n.Consider the change he output per worker, consumption per worker, and investment per worker during the transition peri