For True/False Questions –
keep in mind that being correct in the “true/false/uncertain” sense
will only buy you one or two points out of the five possible. Graders
are instructed that [paraphrasing] “four points may be fully correct,
but not quite excellent work” in terms of one's explanation as to why
the answer is true/false/uncertain. Thus, my advice to you: study for over the top, fully correct & comprehensive & non-rambling answers. I do my best to give you solid examples of those below. If output is below potential, unemployment will be higher than its natural rate. See page 228+ Okun’s Law. Solution (Okun's Law Application) Unemployment and short-run output are negatively related. See page 228+ Okun’s Law. Solution (Another Okun's Law Application) If output is above potential, then inflation will fall over time. See page 224+ Phillips curve. Solution (Phillips curve) The Phillips Curve predicts a negative relationship between output fluctuations and the change in inflation. See page 224+ Phillips curve. Solution (Phillips Curve II) In the IS equation, if then short-run output See page 246 (of Jones Macro Econ) Solution (IS Curve Equation) Suppose that initially . Then there is a demand shock to consumption where and the Then short-run output will rise by 1%See page 246-247 (of Jones Macro Econ) Solution (IS Curve Equation)
See the AS/AD chapter. If income in the UK increases, this would cause the AS curve in the US to shift to the right. See Chapter on AS/AD Framework. Example 3 “A Positive AD Shock”. Solutions (AS Query)
See the IS Curve chapter. Multiplier effects. Solution (Consumption Multiplier) | Long Problems -
each 'long problem' usually accounts for a quarter of the test's
points. Worth about five true/false problems in total. Long problems
center around one of the major topics in the class (the Solow Model
worked through and applied, the Romer model worked through &
applied, so on). Dec 9 2009 Final Long Problem 1Nov 8, 2010 Practice Mid-Term 3 - Long Problem 1Nov 22 2010 Practice Mid-Term 4 - Long Problem 2 Solutions (a) Intuition of shocks to IS Curve (Chapter 10) and IS-MP framework, particularly pages 269-271 (b) IS Curve derivation and manipulation. Table 10.1, and pages 242+. See Chapter 10 problem 8. (c) Chapter 12, Monetary Policy Rule, AS/AD framework. Pages 300+ (d) intuiting the IS and AD curves March 17 2010 Final. Long Problem 1 |

Teaching - Curtis Kephart > Econ 100B Intermediate MacroEconomics (Homework and exam examples) >