Blanchard中级宏观经济第三版答案..doc

Answers to end-of-chapter problems Chapter 1 Quick Check 1. a. True. b. True. c. True/Uncertain. Average growth is lower since 1973. However, since the mid-1990s, output per worker has growth at about the pre-1973 rate. Its too soon to tell whether this marks a return to pre-1973 growth rates or simply a few lucky years. d. True. e. False. f. False. 2. a. 1960-2000 2001-2002 US 3.5% 0.9% EU 3.1% 1.6% Japan 5.5% -0.9% b. Probably closer to long-run average, because averages over short time periods reflect business cycles. However, Japan was growing exceptionally fast in the early postwar period as it caught up to the United States. Even if Japan recovers from its current slump over the next decade, it may not resume growth as high as its previous average. 3. a. Low unemployment might lead to an increase in inflation. b. Although measurement error may contribute to the measured slowdown in growth, there are other relevant issues, including the productivity of new research and the accumulation of new capital. c. Although labor market rigidities may be important, it is also important to consider that these rigidities may not be excessive, and that high unemployment may arise from flawed macroeconomic policies. d. Although poor regulation of the financial system may be contributing to the length of Japans slump, most economists believe that the collapse in Japanese asset prices triggered the economic downturn. Moreover, tightening regulation would likely involve more pain in the short run since some banks and firms would be forced to close. e. Although the Euro will remove obstacles to free trade between European countries, each country will be forced to give up its own monetary policy. Dig Deeper 4. Discussion question. 5. a. 10 years: (1.01)10=1.10 or 10 % higher; 20 years: 22% higher; 50 years: 64% higher