a) How did the Fed cooperate with the U.S. Treasury during and immediately after World
b) Describe the Fed-Treasury Accord and evaluate whether it was effective in improving
economic conditions. Discuss the implications of the agreement.
c) What was a “lean against the wind” policy? Was it effective in the 1950s and early 1960s?
d) Describe exacerbating factors other than monetary policy that may have contributed to
the high rates of inflation and numerous recessions from the mid-1960s through the
e) Describe the conditions leading up to the 1981-82 recession. Summarize monetary policy
before and during the recession. What were Chairman Volker’s goals?
f) Define the term “Great Moderation.” Give examples of its characteristics?
Question 2) Essay Question: Please watch the Milton Friedman video on “How to Cure
Inflation” posted under Week 11, Wednesday 11/4 : Write about a 300-word summary of the
views expressed by Prof. Milton Friedman. In particular, your summary needs to address how
Prof. Friedman describe the following: cause of inflation, costs of inflation on society , what the
Fed can do to cope up with the problem of inflation, and how Japan cured its inflation problem.
Also, describe your key takeaways from the debate, which parts you agreed with and which
parts you disagreed with.
Question 3) If the required reserve ratio is 100 percent, could the Federal Reserve still change
the money supply with open market operations? Explain whether they could or could not.
Question 4) Suppose the quantity of money is greater than the quantity of money demanded.
In the short run, what occurs to set the quantity of money equal to the quantity of money
Question 5) Use the money demand and money supply model to show graphically and briefly
explain the effect on the interest rate if real GDP increases.
Question 6) Use the money demand and money supply model to show graphically and explain
the effect on interest rates of the Federal Reserve’s open market purchase of Treasury
ECN 102, Fall 2020
Question 7) The Fed conducts an open market sale of securities. Explain the effects of this
action in the short run on the nominal interest rate and in the long run on the value of money
and the price level.
Question 8) Suppose that banks launch an aggressive marketing campaign to get everyone to
use debit cards for every conceivable transaction. They offer prizes to new debit card holders
and introduce a charge on using a credit card. How would the demand for money and the
nominal interest rate change?
Question 9) If the velocity of circulation is constant, real GDP is growing at 3 percent a year, the
real interest rate is 2 percent a year, and the nominal interest rate is 7 percent a year, calculate
the inflation rate, the growth rate of money, and the growth rate of nominal GDP.
Question 10) In 2007, the United States was at full employment. The quantity of money was
growing at 6.4 percent a year, the nominal interest rate was 4.4 percent a year, real GDP grew at
1.9 percent a year, and the inflation rate was 2.9 percent a year.
a) Calculate the real interest rate.
b) Was the velocity of circulation constant? (Hint: Use the quantity theory of money.) If the
velocity of circulation was not constant, how did it change?
Question 11) If the velocity of circulation is growing at 1 percent a year, the real interest rate is 2
percent a year, the nominal interest rate is 7 percent a year, and the growth rate of real GDP is 3
percent a year, calculate the inflation rate, the growth rate of money, and the growth rate of
Question 12) Assume that the consumption function for an economy is C = 1000 + .75Yd. You
are told that the level of taxes in this economy is $1000 and transfer payments=0, NX=0.
Fill in the empty cells.
C I G Planned
5000 1000 1000
7000 1000 1000
9000 1000 1000
Question 13) Given the equations for C, I, G, and NX below, what is the short run equilibrium
level of GDP? Suppose for simplicity taxes and transfer payments=0.
C = 2,000 + 0.9 Yd, I = 2,500, G = 3,000, NX = 400
Question 14) Assume the following behavioral equations for a macroeconomy:
C = 100 + .9Yd , I = 50, Taxes = 100 and G = 40 Transfer payments=0
Calculate the short run equilibrium level of output.
ECN 102, Fall 2020
Question 15) a) Using the table below, calculate the unplanned change in inventories for each
level of GDP, and explain what will happen to GDP or production in the economy?
$2,000 $1,600 $250 $250 $100
2,500 2,000 250 250 100
3,000 2,400 250 250 100
3,500 2,800 250 250 100
b) Identify the level of real GDP at which the economy is in equilibrium. Explain why is that
particular level of real GDP the equilibrium in the short run?
c) Graphically show the short run equilibrium based on the above data with the help of the
Question 16) Equations for C, I, G, and NX are given below. If the equilibrium level of GDP is
$21,500, what is the marginal propensity to consume? Suppose for simplicity taxes and transfer
C = 1,500 + (MPC) Yd,
I = 1,000,
G = 2,000,
NX = -200
It has regularly been expressed that 1943 was a watershed in the advancing universe of melodic theater. Talk about this assertion and analyze the collection and class of pre-1943 with post-1943 melodic theater. It has been asserted by numerous that 1943 was a watershed in the advancing universe of melodic theater. There is a predominance of proof to recommend that this is genuine that will be examined inside this exposition. One of the primary ways this change can be seen is through the changing manners by which ladies were spoken to and their part inside the melodic entertainment business world. Actually, woman's rights and the changing perspectives on ladies' part in theater was both a compelling element of this defining moment and a result of the advancement made. It very well may be contended that 1943 was a defining moment for melodic theater as a result of the portrayal of ladies as instructed, working citizenry, the open doors given to ladies of shading, and the stage it given to ladies in the business, for example, chiefs and choreographers (Van Aken, 2006, p.18). Prior to 1943, the melodic entertainment business world was overflowing with severe mentalities towards ladies which can be seen in famous shows of the time, for example, in Follies, Sally (1920), and The Gingham Girl (1922), (Barnes, 2015, P.14). Probably the greatest wellspring of chance ladies had in the mid twentieth century tagged along as Ziegfeld's Follies. In any case, the rules to be utilized as an entertainer in the Follies was very exacting, in a statement from Ziegfeld he records the particular ways the young ladies should glance to be recruited, completing his assertion with 'The eyes ought to be huge and expressive. A standard profile is a chosen resource… The legs must be shapely… the extents of the figure must be great.' (Kantor and Andrews, 2004, n/a). This statement shows the unreachably exclusive requirements men had for ladies during the 20s and the externalization of them in the functions of melody young ladies. This is significant in light of the fact that it shows that ladies weren't profoundly regarded before the 1940s. It could in all likelihood be contended that the arrangement of Ziegfeld's recruiting cycle and the glorification of those picked to perform 'set up for current sexual typification' (Norman, 2018, para.1). This can be additionally exemplified in depictions of the Follies exhibitions. The ladies are portrayed as 'extremely obscene', (Mates, 1987, p.129), demonstrating the degree of the consideration on their bodies. Truth be told, Ziegfeld's shows simply demonstrated to get more provocative every year, 'He went from the intriguing to the express over the long haul anyway never entirely going too far to full bareness.' (Legacy.com, 2018, para.7). This adds extra proof to show the differentiation of how ladies were spoken to before 1943. Then again, it very well may be contended that Follies gave ladies an ability to be self aware certainty that they clutched for the remainder of their carries on with, (Norman, 2018, para.3). That is reasonable for those ladies, however what sort of message did this ship off the young ladies not picked to be in the shows? It gave the basic ramifications that without having a 'awesome' body, they were not deserving of the consideration given in any case. This assists with indicating the differentiation between the manner in which ladies were treated in the mid twentieth century contrasted with after the 40s support up the possibility that 1943 was a defining moment. This thought proceeded for a long time is still around today in specific territories of execution, for example, Moulin Rouge entertainers. Today, the females are needed to be a base stature of 5'9 and have 'A thin effortless figure' (Moulin Rouge (Site Officiel), 2019, n/a). This bears similitudes to Follies, which is justifiable as it is hard to totally destroy this sort of externalization. Nonetheless, it is less well known now, as melodic auditorium is less centered around introducing sexuality. Another of Ziegfeld's shows was Sally (1920), a melodic about a dishwasher who turns into a Follies star. This storyline was normal be that as it may, as this sort of 'poverty to newfound wealth story, otherwise called 'Cinderella musicals', turned out to be famous during the 20s. The normal plotline of these accounts would comprise of a youthful, generally poor, working young lady, who picks up the fondness of an attractive mogul. Despite the fact that much of the time she additionally increases a fruitful profession (The New York Public Library, 2018, para.19). This made the suggestion that ladies at the time required a more fruitful man to improve their lives and to get any sort of vocation. Hence, this shows that men were viewed as the more prevailing sex. An extra issue introduced by these storylines turning out to be so famous is featured in this statement, 'these early and mid-20th century Broadway musicals depicted courageous women conflicted between ladylike home life and expert independence' (Cantu, 2015, p.3). It recommends that there is an expense for not adjusting to the social builds of ladylike conduct at that point. Maybe, this was the start of musicals offering solid social and political expressions through addressing whether ladies ought to have more autonomy. In any case, one motivation behind why 'Cinderella musicals' were so refreshing at the time may have been that female crowds had the option to see the beginnings of the idea of ladies accomplishing effective professions and working during the 20s. During the second modern insurgency more positions opened up for ladies (Burnette, 2011, p.56). The expanded perceivability of ladies in the working environment was being reflected in these musicals. For example, Mary Thompson in The Gingham Girl (1922) 'who follows her beau to Manhattan, just to out-succeed him in business' (The New York Public Library, 2018, para.20). The subsequent universal war, 1939-1945, achieved a great deal of progress just as giving 'exceptional openings for work for ladies' (Colman, P. 1995, n/a). To intricate, because of men disappearing to war, ladies needed to turn out to be more dynamic in the workforce and the possibility of lady turned out to be all the more much of the time inseparable from working individuals, bringing the idea of the working lady. Since melodic theater consistently strived to reflect reality, it appeared well and good that this change offered an entirely different side to ladies which was utilized in melodic performance center as new intriguing parts to speak to the everchanging functions in the public eye. This can be found in the Rodgers and Hammerstein show Oklahoma (1943), when as opposed to seeing a gathering of theme young ladies opening the show, which was more normal in the revue where 'upwards of 280 chorale young ladies may be utilized;' (Mates, 1987, p.148), the window ornaments rose to uncover the straightforward scene of a lady stirring margarine, something that right now would be viewed as a typical assignment. As theater has consistently strived to speak to reality, as recently referenced, this shows how ladies were getting less observed as generalized amusement and more as persevering individuals. This thought of the working lady was furthermore exemplified by genuine ladies working in the entertainment biz industry. By and by utilizing Oklahoma for instance, we can take a gander at crafted by Agnes de Mille who was said to have upset the manner in which move was used in melodic theater. This was finished with her fantasy artful dance scene in which move was incorporated into the storyline of the melodic unexpectedly. It was said in the book 'America's Musical Stage' by Julian Mates, 'Agnes de Mille's fantasy grouping moves pushed the story ahead, to such an extent that no melodic with genuine assumptions could manage without a fantasy artful dance for quite a long time to come.' (Mates, 1987, p.190). This shows the quality of the effect de Milles work had on later shows and the manner in which move was utilized in melodic theater. Others saw the extent of accomplishment accomplished by this new style of movement and how it helped the movement of the storyline of the melodic itself, and through this understood that it was something that could and should be repeated through different works of melodic theater. This is apparent in crafted by different choreographers. Nonetheless, de Mille's work set the development of melodic venue move moving in that move began being utilized in a diegetic way instead of inside a fantasy. 'Jerome Robbins utilizes diegetic move numbers', (Symonds and Taylor, 2013, p.86). This implies that the characters realize they are moving, considering a more unadulterated incorporation of move into the melodic, it additionally gives the characters occasion to remark and notice (Symonds and Taylor, 2013, p.88). These acclaimed move numbers from musicals, for example, West Side Story (1957) and Gypsy (1959), were moved inside the conditions of the presentation. It very well may be contended that this shows how crafted by Agnes de Mille changed how move was utilized in the melodic entertainment business world after 1943. Another focal point to be examined, concerning the impact the war had on ladies' part in the melodic entertainment business world, would be that it opened up numerous open doors for ladies of shading at the time which was significant in this time paving the way to the social liberties period. It was said in Post-WWII African-American Musicals by Laurence Maslon: 'the quantity of dark entertainers in plays and musicals on Broadway in 1946 was in excess of multiple times the number before World War II started.' To summarize another statement from this source, the expanded open doors was an impression of the social changes during and after the second universal war (Maslon, 2018, para.3). This could be on the grounds that so many individuals of color, including ladies, joined the military in world war 2 and aided in the war exertion. It was said that they 'put forth significant commitments to the war attempt, and acquired high acclaims and honors for their battles and forfeits', (Historyplace.com, 2018, n/a), successfully changing numerous individuals' perspectives, and changing the essence of melodic auditorium during the 40s. This can be found in the numerous shows that came out at the time comprising of an all dark cast or an incorporated cast, for example, the shows Carmen Jones (1943) which was 'a specta>GET ANSWER