• Home
  • Textbooks
  • Introducing advanced macroeconomics: growth and business cycles
  • Macroeconomics for the long run and for the short run

Introducing advanced macroeconomics: growth and business cycles

Peter Birch Sørensen, Hans Jørgen Whitta-Jacobsen

Chapter 1

Macroeconomics for the long run and for the short run - all with Video Answers

Educators

Chapter Questions

View

Problem 1

Discuss why macroeconomists typically work with aggregate variables and explain the arguments they use to defend this procedure. Do you find the arguments reasonable? Justify your answers.

Rashmi Sinha
Rashmi Sinha
Numerade Educator
01:58

Problem 2

Short-run verses long-run macroeconomies
Explain the different assumptions underlying macroeconomics for the short run and macroeconomics for the long run. Do you find these assumptions reasonable? Justify your answers.

Sujita Thavva
Sujita Thavva
Numerade Educator

Problem 3

Macroeconomic policies for the short run and for the long ran
Explain the difference between structural policies and demand management policies. Explain the concepts of 'nominal rigidities', 'real rigidities' and the 'natural rate of resource utilization'. Try to give concrete examples of typical short-run policies and typical long-run policies.

Check back soon!

Problem 4

Fighting structural unemployment
Try to think of specific policies which might reduce the natural rate of unemployment. Explain why you think that these particular policies might reduce long-run unemployment.

Check back soon!
00:56

Problem 5

Menu costs and real and nominal rigidities
Explain and discuss the type of costs included in the concept of 'menu costs'. Explain why and in what sense so-called real rigidities are necrssary to generate nominal wage and price rigidity.

Kaylee Mcclellan
Kaylee Mcclellan
Numerade Educator