代做5QQMB205: Intermediate Macroeconomics Examination 2021/22帮做R程序

日期：2024-03-30 10:18

5QQMB205 Examination 2021/22

Module Code and Title: 5QQMB205: Intermediate Macroeconomics

Examination Period: Period 1, May 2022

Time allowed: Students are recommended to spend no longer than 4 hours on this paper. The paper will be available for 24-hours from 12:00 on 25

May.  Students will need to submit their answers by 12:00 on 26 May.

Word count: Students should not exceed more than 1500 words for this paper (excluding equations, tables and graphs).

INSTRUCTIONS TO CANDIDATES:

1. There are 5 questions in total. Answer ALL questions in Part 1 and give yourself enough time to make a 3-to-5-minute video for Part 2.

2. Paste any required diagrams and graphs for your answers directly onto the answer sheet using software or uploaded photos.

3. A template cover sheet has been provided on the KEATS page, you

should complete and type your answers below, or attach to the front of your submission. Make sure you clearly indicate the questions you  are answering (e.g. Section A, Question 1).

4. If you have a PAA cover sheet, you should include this in addition to your submission.

5. Save your work regularly, at least every 15 minutes.

ONLINE SUBMISSION INSTRUCTIONS:

1. You should submit your work via the Turnitin submission link on the module KEATS page.

2. Ensure your document is submitted through Turnitin with the title CANDIDATE ID – MODULE CODE- e.g. AB12345-4SSMN103

3. Once submitted please check you are satisfied with the uploaded document via the submission link.

4. If you experience technical difficulties uploading your assessment to KEATS please email a copy to EMAIL ADDRESS@kcl.ac.uk with the

subject of the email as CANDIDATE ID- MODULE CODE- PERIOD 1   ASSESSMENT. You should attach supporting evidence of technical issues where possible.

PART 1

You should answer ALL questions from this section.

Question 1

The Phillips curve is named after economist A.W. Phillips, who examined U.K. unemployment  and  wages  from   1861-1957.   Phillips   found  an  inverse relationship between the level of unemployment and the rate of change in wages (i.e., wage inflation).

a) Write down a formula for the Phillips curve as discussed in the lectures or textbook and describe your notation. [3 marks]

b) Inflationary expectations are an important driver of the Phillips curve relationship. What are three different ways inflationary expectations might be modelled? Depict each graphically. [ 10 marks]

c) How might the response of a central bank to an external inflation shock depend upon the way that the home population forms its inflationary expectations? [7 marks]

Question 2

Let’s assume our country is “Futureland” with only two sectors: Agriculture and Mining. As we learned, labour market consists of demand side and the supply side like any other markets. Let us have the demand for labour in agriculture and mining as described by these equations:

L"  =  100 ? 4W"

LM  =  200 ? 6WM

We know L denotes the labour and W denotes wage in dollar for each sector (Agriculture and Mining). Let us have Futureland with only 100 workers who are able and willing to work in each of these two sectors. Workers are free to move between these two sectors freely.

a) We assume that wages adjust to equilibrate labour supply and labour demand. Calculate the wage and employment in each sector. [8 marks]

b) Suppose a  union establishes itself in agricultural sector and  pushes the wage in mining to $25. Calculate employment in agricultural sector.

c) In the aftermath of the unionization of agriculture, all workers who cannot get the highly paid union jobs move to the mining sector. Calculate the wage and employment in mining sector. [5 marks]

d) Now suppose  that workers  have  a reservation wage of  $15—that  is, rather than take a job at a wage below $15, they would rather wait for a $25 union job to open up. Calculate the wage and employment in each sector. What is the economy’s unemployment rate? [4 marks]

Note: Students must remember that any calculation question in exam needs step by step explanation and why they chose to do any mathematical trick [if necessary] and give a bit of economic interpretation i.e., because labour supply should be equal to the labour demand and in the absence of any wage rigidity the wages in two sectors should be equal as  labour mobility will equalise any inequality in wages in sectors as long as there is an incentive for workers to move for higher wage. Here we assume the only incentive would be higher wages.

Question 3

Federal Reserve Bank of New York hires you to give them policy advice when shocks hit the economy. You are now an experience consultant and are going to use the IS– LM analysis as a tool to predict the short-run effects of each of the  following  shocks  on  the  interest  rate,  output,  consumption,  and investment. In each case, explain what Federal Reserve should do to keep the output at its initial level. Be sure to use a graph your answers.

a) A wave of credit card fraud increases the frequency with which people make transactions in cash. [7 marks]

b) A best seller titled “Stop worrying about your pension” convinces the general public to increase the percentage of their income devoted to saving. [7 marks]

c) Fed chooses a new “dovish” chair of monetary policy which as consequence will increases expected inflation of the general public. [6 marks]

Question 4

We live in a world with lots of uncertainty and our economic decisions would be  affected  by  the  political  turmoil,  economic  fluctuations  and  societal changes. Let us assume that our expectations for the inflation are subject to some random shocks and let’s model it as Et%1πt  = πt%1  + ηt%1. Here ηt%1   is random shock  (i.e., increase in the price of fuel). This shock is normally equally zero, but we know it deviates from zero when some events beyond past inflation (contrast to adaptive expectation) causes expected inflation to change.

a) Firstly, derive both the dynamic aggregate demand (DAD) equation and the dynamic aggregate supply (DAS) equation in this slightly more general model. [6 marks]

b) Suppose the economy experiences an inflation scare. That is, in period t, for some reason people come to believe  that inflation in period t+1 is going to be higher, so ηt is greater than zero (for this period only).  What  happens  to  the DAD and DAS curves  in  period t? What happens to output, inflation, and nominal and real interest rates in that period? Explain. [5 marks]

c) What happens to the DAD and DAS curves in period t+1? What happens to output, inflation, and nominal and real interest rates in that period? Explain. [6 marks]

d) In what sense are inflation scares self-fulfilling? [3 Marks]

PART 2

(You  need to solve this question and  make a 3-to-5-minute video of the solution. Try to explain it in a simple way and step by step in the video.)

We live Futureland whose economy is initially at a long-run equilibrium. Our central bank decision is to increase the money supply. Assuming any resulting inflation to be unexpected, describe any changes in GDP, unemployment, and inflation that are caused by the monetary expansion. Explain your conclusions using three diagrams: one for the IS– LM model, one for the AD–AS model, and one for the Phillips curve. [20 marks]