Homework 1

Macro

Due Tuesday, October 6

 

  1. Fill in the following table to compare the U.S. economy with that of Japan and Europe.  Get the data from The Economist magazine.  You can get this online at www.economist.com .   On the left-hand side of the webpage, open up “Markets and data” and click on “Weekly indicators”.  Then, on the right-hand side of the page under “Indicators”, click on two tables: (1) “Output, prices and jobs” for the first three variables and (2) “Trade, exchange rates, budget balances and interest rates” for the last three variables.  (An alternative would be to pick up a physical copy of The Economist at a bookstore or to look at the copy at our library.)

 

Country/Area

GDP (Quarter)

Unemployment Rate

Inflation Rate (as measured by latest Consumer Prices)

Trade Balance

Budget Balance (as percent of GDP)

Interest Rates (3-month)

United States

 

 

 

 

 

 

 

Japan

 

 

 

 

 

 

 

Euro area

 

 

 

 

 

 

 

 

  1. The unemployment rate for September 2009 will be released on Friday, October 2 by the Bureau of Labor Statistics www.bls.gov .  What is this new rate?  Along with the new rate is released the change in average hourly earnings.  What was this change? 

 

 

 

  1. What are the three main economic goals in macroeconomics?  How are we currently doing with each goal—which direction has the variable been moving?

 

 

 

 

  1. What is the main difference between Classicals and Keynesians when it comes to their views of the role of government within a market system?

 

  1. Do Problem 1 e and l (the letter after k) on page 20 of the book.

 

  1. Do problem 10 b on page 21 of the book.