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Makroöko Assignment: wer kann helfen?
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Makroöko Assignment: wer kann helfen?
ich muss für makro-öko kurs ein assignment einreichen und untenstehende fragen beantworten. leider hab ich vom material noch nicht viel ahnung (muss es auf die prüfung ja sowieso lernen, aber bis zum einreichedatum wirds ziemlich stressig). wenn mir daher jemand weiterhelfen könnte, wär das extrem cool. einfach ein paar tipps oder hinweise in die richtige richtung wären schon sehr viel wert (hat ja hier ein paar vwl cracks)! wenn jemand bereit wäre, das ganze sauber zu lösen, wärs selbstverständlich auch ne "belohnung" wert... (time is money, right). für mehr details: pm.

Problem 1
1.1) What happens to the AS curve (Hint: It may be useful to consider what happens to the so-called Beveridge curve)
(a) if the government improves the flow of information between enterprises with vacant positions and potential employees?
(b) if administrative prescriptions prevent workers from moving across regions?
© if programmes to change professional qualifications are increasingly supported by the government?
(problem 6.11 in Gärtner)

1.2)
Your American friend boasts of the US economy’s “higher ability to adjust” because of a large number of “extremely mobile workers who build cars in Detroit today and sell shoes in Miami tomorrow”. What concept does your friend have in mind? Does the advantage come at a cost? (problem 6.12 in Gärtner)


Problem 2
Consider an economy with flexible exchange rates, which can be described by the following DAD and SAS curves:
π = μ − 0.025(Y − Y?1) DAD curve
π = πe + 0.075(Y − Y*) SAS curve
Assume that output in the preceding period was 150 units, which is 50 units below full employment output Y*. The growth rate of money supply is 10% and agents expect an inflation rate of 5%.
(a) Draw the DAD and the SAS curves and compute current output and inflation.
(b) The central bank considers reducing the money growth rate from 10% to 5%. Assume that the inflation expectations of the agents remain unchanged and draw the new DAD and SAS curves to analyze the immediate effect on inflation and output of such a policy change.
(problem 8.3 in Gärtner)


Problem 3

3.1) Let Germany’s SAS curve be Y = 0.5 + (π − πe), i.e. it has slope 1 and normal output is 0.5. The public support or vote function is s = 49 − 0.5π2 + Y.
(a) What is the vote-maximizing inflation rate?
(b) Suppose inflation expectations are πe = 0.5. Can the government win this election?
© What are the government vote shares in the cases πe = 0 and πe = 1?
(problem 11.2 in Gärtner)

3.2) Let Italy’s SAS curve be Y = 0.5 + (π − πe), the same as Germany’s, while its vote function is
s = 95− 0.5π2 + 10Y.
(a) By how much can Italy reduce its inflation bias by fixing the exchange rate between the lira and the Deutschmark?
(b) What may keep Italy from entering such an exchange rate arrangement?
(problem 11.4 in Gärtner)

besten dank für any inputs!
11-02-2008 06:36 PM
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