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Macroeconomics Principles and Policy

William J. Baumol, Alan S. Blinder, John L. Solow

Chapter 5

An Introduction to Macroeconomics - all with Video Answers

Educators


Chapter Questions

02:37

Problem 1

Which of the following problems are likely to be studied by a microeconomist and which by a macroeconomist?
a. The rapid growth of Twitter
b. Why unemployment in the United States fell from 2010 to 2018
c. Why Japan's economy grew faster than the U.S. economy in the $1980 \mathrm{~s}$, but slower in the $2000 \mathrm{~s}$
d. Why the growth of health-care costs slowed down in recent years

Alejandro Ruiz
Alejandro Ruiz
Numerade Educator
01:04

Problem 2

Use an aggregate supply-and-demand diagram to study what would happen to an economy in which the aggregate supply curve never moved while the aggregate demand curve shifted outward year after year.

Crystal Wang
Crystal Wang
Numerade Educator
03:46

Problem 3

Which of the following transactions are included in gross domestic product, and by how much does each raise GDP?
a. Smith pays a carpenter $\$ 50,000$ to build a garage.
b. Smith purchases $\$ 10,000$ worth of materials and builds himself a garage, which is worth $\$ 50,000$.
c. Smith goes to the woods, cuts down a tree, and uses the wood to build himself a garage that is worth $\$ 50,000$
d. The Jones family sells its old house to the Reynolds family for $\$ 400,000$. The Joneses then buy a newly constructed house from a builder for $\$ 500,000$.
e. You purchase a used computer from a friend for $\$ 200$.
f. Your university purchases a new mainframe computer from IBM, paying $\$ 25,000$.
g. You win $\$ 100$ in an Atlantic City casino.
h. You make $\$ 100$ in the stock market.
i. You sell a used economics textbook to your college bookstore for $\$ 60$.
j. You buy a new economics textbook from your college bookstore for $\$ 100$.

Natalie Britton
Natalie Britton
Numerade Educator