中山大学中级宏观经济学期末试题

中级宏观经济学试题

2007学年度第一学期2006年级中级宏观经济学试题A

1.(15 points) As we all know China is suffering from moderate inflation. The following is about the relevant basic concept.

1)(3 points) what’s the definition of inflation, and how to measure?

2)(4 points) what’s the definition of inflation tax, and how to measure?

3)(4 points) what’s the dynamic inconsistency, and how to solve it?

4)(4 points) please comment on the inflation in China, such as cause, solution and so on.

2.(15 points) Please consider the derivation of AD schedule.

1)(3 points) what’s the definition of AD curve?

2)(6 points) graphically derive the AD schedule when the monetary authority is targeting the money stock.

3)(6 points) graphically derive the AD schedule when the monetary authority is targeting the interest rate.

中级宏观经济学试题

3.(20 points) The following equations describe an economy. (Think of C, I, G, etc, as being measured in Billions and I as a percentage.)

C=0.8(1-t)Y

I-900-50i G=800, t=0.25

MD

0.25Y 62.5i P

MS=500

1)(6 points) What are the equations that describe the IS curve, LM curve and AD curve?

2)(10 points) Suppose the government spending increase to 1000, and that monetary policy is accommodating, what does the monetary authority do?

3)(4 points) By how much do the changes in policy mix affect the AD curve?

4.(20 points) Suppose an economy, which is at its natural level, experiences a permanent decline in marginal propensity to consume.

中级宏观经济学试题

1)(5 points) graphically show, in the IS-LM framework, the effects of the decline in marginal propensity to consume.

2)(5 points) graphically show, in the Solow model, the effects of the decline in marginal propensity to consume.

3)(5 points) graphically show, in the AS-AD framework, the effects of the decline in marginal propensity to consume.

4)(5 points) comment on your answers to parts <4.1>, <4.2> and <4.3>.

5.(20 points) Suppose a person who lives for three periods and earns incomes of 30, and 60 in the first two periods of life cycle. There are no earnings during retirement. Assume the interest rate is 0, and the life-time utility is , θ>0

1)(4 points) if the credit market is open to individuals, determine the level of consumption for the person who maximizes the life-time utility.

2)(4 points) if the credit market is close to individuals,

中级宏观经济学试题

determine the level of consumption for the person who maximizes the life-time utility.

3)(8 points) Suppose there is a pay-as-you-go social security system in the economy, whereby 10 lump-sum taxes on the currently working generation in every period are used to fun payments to retirees. Now, check changes in your solutions to parts <5.1> and <5.2>.

4)(4 points) comment on the consumption in China.

6.(10 points) Consider China economy with four sectors, that’s AD=C+I+G+NEX. For simplicity, think of NEX as autonomous foreign demand, and being measured as US dollar. The central bank buys NEX at the fixed exchange rate, and therefore endogenously increase the money supply.

1)(5 points) Show, in the IS-LM framework, the effects of the increase in NEX.

2)(5 points) Suppose China economy is at potential level initially, what is the required policy to deal with the increase in NEX? Use the IS-LM framework to

中级宏观经济学试题

show your proposal.