總體經濟學 # 期末考 日期： 96.06.29
選擇題：每題 3 分
1. According to the imperfect-information model, when the price level rises and the producer expects the price level to rise, the producer:
A) increases production.
B) does not change production.
C) decreases production.
D) hires more workers.
2. In the sticky-wage model an unexpectedly lower price level leads to a ______ in the labor demand curve, while in the sticky-price model reductions in output lead to a
____ in the labor demand curve.
A) movement along; shift in
B) movement along; movement along
C) shift in; shift in
D) shift in; movement along
3. In the case of cost-push inflation, other things being equal:
A) both the inflation rate and the unemployment rate rise at the same time.
B) the unemployment rate rises but the inflation rate falls.
C) the inflation rate rises but the unemployment rate falls.
D) both the inflation rate and the unemployment rate fall.
4. A recession may alter an economy's natural rate of unemployment in all of the following ways except by:
A) changing an unemployed individual's attitude toward work.
B) reducing an unemployed worker's job skills.
C) permanently reducing the money supply.
D) altering the wage-setting process.
5. The lag between the time that economic stimulus is needed and the time that a tax cut is passed by Congress is an example of a:
A) fiscal inside lag.
B) fiscal outside lag.
C) monetary inside lag.
D) monetary outside lag.
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6. According to the Lucas critique, when economists evaluate alternative policies they must take into consideration:
A) how the policies will affect expectations and behavior.
B) whether the policy will offset the impact of automatic stabilizers.
C) the stage of the political business cycle in which the policy is to be implemented.
D) the length of the inside lags associated with the policies.
7. Conducting fiscal policy so that G = T + β ( u - u n
), where G is government expenditures, T is tax revenue, u is the unemployment rate, u n
is the natural rate of unemployment, and β is a positive number, is an example of a(n):
A) active rule.
B) passive rule.
C) discretionary policy.
D) automatic stabilizer.
8. A monetary policy rule that targets nominal GDP would ______ money growth when nominal GDP rises above the target and ______ money growth when nominal
GDP falls below the target.
A) reduce; raise
B) raise; reduce
C) reduce; reduce
D) raise; raise
9. Measuring the size of government debt is complicated by all of the following factors except :
A) inflation.
B) uncounted liabilities.
C) capital assets of the government.
D) failure of the Office of Management and Budget to disclose figures on capital expenditures and credit programs.
10. According to the traditional viewpoint, a tax cut without a cut in government spending:
A) raises consumption in both the short run and the long run.
B) lowers consumption in both the short run and the long run.
C) raises consumption in the short run but lowers it in the long run.
D) lowers consumption in the short run but raises it in the long run.
11. All of the following are arguments against Ricardian equivalence except consumers:
A) make consumption decision myopically.
B) are rational and forward looking in consumption decisionmaking.
C) are borrowing constrained.
D) do not expect future taxes to fall on them.
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12. If the government levies a one-time temporary tax on the young and gives the proceeds to the elderly, and both generations follow the life-cycle consumption pattern and are altruistically linked:
A) both the young and the old will consume more.
B) there will be a net increase in overall consumption.
C) there will be a net decrease in overall consumption.
D) there will be no change in overall consumption.
13. According to Modigliani's life-cycle hypothesis, if a consumer wants equal consumption in every year and the interest rate is zero, then the marginal propensity to consume out of wealth ______ as years ______ decrease.
A) increases; of life remaining
B) decreases; of life remaining
C) increases; until retirement
D) decreases; until retirement
14. According to the permanent-income hypothesis, if consumers receive a permanent increase in their salary then they will:
A) save most of it in the current year.
B) spend most of it in the current year.
C) spend one half of it and save one-half of it in the current year.
D) not alter their consumption or saving in the current year.
15. If consumers correctly anticipate their future incomes:
A) the saving rate will be high when consumers anticipate a boom.
B) the saving rate will be low when consumers anticipate a boom.
C) the saving rate will be low when consumers anticipate a recession.
D) they will be disappointed because future income can never be correctly forecasted.
16. A binding borrowing constraint will ______ the potency of an announced future tax cut to influence aggregate demand but will ______ the potency of a temporary tax cut.
A) not affect; increase
B) increase; not affect
C) decrease; increase
D) increase; decrease
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17. Assume that the government levies a one-time-only tax on oil companies equal to a proportion of the value of the company's oil reserves. According to the neoclassical model, if firms face no financing constraints and also believe the tax will not be repeated, the effect of this tax on investment by these firms will be to:
A) decrease investment.
B) not affect investment.
C) increase investment.
D) decrease the rental price of capital but not change the cost of capital.
18. The function showing total spending on investment would be shifted inward and to the left by:
A) a technological innovation that increases the production function parameter A.
B) any event that raises the marginal product of capital.
C) any event that raises the purchase price of capital.
D) an accident that destroyed one-quarter of the U.S. capital stock while leaving the labor supply intact.
19. If the replacement cost of installed capital equals $20 trillion and the market value of installed capital equals $25 trillion, then according to q theory, businesses should:
A) add to capital stock.
B) let capital stock shrink.
C) keep capital stock unchanged.
D) reduce product prices to increase profits.
20. Holding other factors constant, a decline in the real interest rate will ______ the price of housing and ______ the flow of residential housing investment.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
簡答題
1. a. Suppose that the economy is initially at the natural level of output, and the expected price level in any period is equal to the actual price level in the preceding period. If the Fed makes a credible, permanent reduction in the money supply, draw a graph to illustrate the path of the economy in both the short run and the long run, using aggregate supply (upward-sloping) and aggregate demand curves.(4 分 ) b. Explain how and why your answer to Part a would be different if expectations were rational and all wages and prices were flexible. (4 分 )
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2. Suppose that there is a reduction in personal income taxes. Use the IS-LM model and the relevant sections in Chapter 17 of the textbook to illustrate what happens to investment according to the : a.
neoclassical (cost-of-capital) model of investment. (4 分 ) b.
accelerator model of investment. (4 分 )
3. Suppose that the Central Bank raises the interest rate at which the average household can borrow and lend. Assume that the typical household behaves according to Irving
Fisher's two-period model, that consumption in both periods is a normal good and that households are initially borrowers. Illustrate graphically how the increase in the interest rate in period one affects consumption in both periods. (6 分 )
計算題
1.
Assume that a firm has a production function Y

1 , 000 L
1
2 , where Y is output and
L is labor. Labor demand is L d 
250 , 000 (
P
W
)
2
and labor supply is
L s 
31 , 250 (
W
P
) . Initially, there is an equilibrium in which output is 250,000, employment is 62,500, the nominal wage is 20, and the price level is 10. Demand for output is 250,000 at the given price, so all output is sold. Suddenly, demand at the given price drops to 200,000, but the firm does not lower its price. It lowers output and lays off workers. a.
Assuming that the firm cannot produce for inventory, how much will the firm want to produce?(4 分 ) b.
Assuming output equals the amount given under Part a , what employment force will the firms want to hire? (4 分 ) c.
If the firm continues to pay the same nominal and real wage, how much more labor will workers wish to supply than the firm will want to hire? (4 分 )
2. Assume that a car-rental company buys cars for $20,000 each and rents them out to other businesses. The company faces a nominal interest rate of 10 percent per year, and car prices are rising at 6 percent per year. If cars depreciate at 30 percent per year, what will be the company's cost of capital per car? (6 分 )
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Answer Key
1. B
2. A
3. A
4. C
5. A
6. A
7. A
8. A
9. D
10. C
11. B
12. D
13. A
14. B
15. B
16. A
17. B
18. C
19. A
20. A
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21. a. b. The real wage is procyclical (declines) in the country that follows the sticky-price model. The real wage is countercyclical (increases) in the country that follows the sticky-wage model.
22. The cost of capital per car is $6,800
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23.
In this drawing both C
1
and C
2
decreases. C
1
must decrease because both the substitution and income effects work to reduce C
1
. However, C
2
may either increase (if the substitution effect is greater than the income effect) or decrease (if the income effect is greater than the substitution effect).
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