Đề cương ôn tập Macroeconomics

Topic 1. Measure National Income and Living Standard

Q1. The following is an example of an economy, which produces 2 goods, rice and fish. Base year is
2002.

a) Calculate nominal and real GDP for 2000, 2001, 2002

b) Calculate economic growth rates for 2001 and 2002
c) Calculate inflation rates using GDP deflator
d) Assume that a person has nominal income-of $6000 in 2000, $7000 in 2001, $8000 in 2002 . Calculate
the changes in real income over years
Topic 2. Saving, Investing and Financial System

Part II. True/False Questions

Q39. When a corporation experiences financial problems, bondholders are paid before stockholders.
Q40. Other things the same, another unit of capital will increase output by more in a poor country than
in a rich country.
Q41. Generally, if people expect a company to have higher future profits, the price of the stock will be
driven down.
Q42. Joan uses some of her income to buy mutual fund shares. A macroeconomist refers to Joan's
purchase as investment.
Q43. If Congress instituted an investment tax credit, the demand for loanable funds would shift right.
Part III. Short Answer and Exercises Questions
Q44. Use a loanable funds diagram to analyze the impact of an increase in government deficit on the
interest rate, investment and national saving.
Q45. What are the basic differences between bonds and stocks?
Q46. Identify each of the following acts as representing either saving or investment.
a. Fred uses some of his income to buy government bonds.
b. Julie takes some of her income and buys mutual funds.
c. Alex purchases a new truck for his delivery business using borrowed funds.
d. Elaine uses some of her income to buy stock in a major corporation,
e. Henrietta hires a builder to construct a new home using borrowed funds.
Q47. Using a graph representing the market for loanable funds, show and explain what happens to
interest rates and investment if a government goes from a deficit to a surplus.
Q48. What is the difference between human capital and technology?
Q49. In a close economy, GDP is 10,000 tax is 2,500 , consumption is 6,500 , and government purchases
is 2000
a. Compute private saving, government saving, national saving and investment?
b. In the market for loanable funds, explain the changes in private saving, government saving, national
saving and investment if households become optimistic about future income and want to consume
more.
Topic 3. Unemployment, Inflation and Trade – off
Part III. True/ False Questions
Q73. Full-time students, retirees, and unpaid stay-at-home fathers are counted as unemployed. F
Q74. If the wage is kept above the equilibrium wage for any reason, the result is structural
unemployment. T
Q75. According to the theory of efficiency wages, firms operate more efficiently if they can pay wages
that are below the equilibrium level. F (if they pay a high wage that will increase the productivity of
workers  make the firm more profitable

Q76. Inflation induces people to spend more resources maintaining lower money holdings. This is called
shoeleather costs. T When inflation is high, people tend to hold lower money balances because the real
value of money is eroding over time. As a consequence, individuals need to make more frequent trips
to the bank or ATMs to withdraw cash, akin to the increased wear and tear on one's shoes from
walking more frequently

Q77. Unemployment insurance reduces hardships of unemployment but also increases the amount of
structural unemployment

Topic 4. Money system and Monetary Policy

Q33. Using separate graphs, demonstrate what happens to the money supply, money demand, the
value of money, and the price level if:
a. the central bank increases the money supply.
b. people decide to demand less money at each value of money.
Q34. The Fed sells government bonds. Use the graph of money market to predict the change in the
value of money.
Q35. Assume that public holds no cash, and the commercial banks always hold the required percent of
deposits as reserves. The required percent of deposits is 25%. The total amount of paper bills issued by
Central bank is 100 million USD.
a. What is the money multiplier? What is the money supply?
b. Assume that the Central bank wants to increase money supply by twenty million dollars to bring the
economy back to the potential level. Given the above information, how can the Central bank attain this
target by using the Open Market Operation?
c. Assume that the Central bank wants to decrease money supply by twenty million dollars to bring the
economy back to the potential level. Given the above information, how can the Central bank attain this
target by changing required reserve ratio?
Q36. a) Suppose that the required reserve ratio is 20 % and you deposit $ 120,000 into ABC bank.
Assume that banks hold no excess reserves and households hold no currency. What is the money
multiplier? What is the total increase in deposits in the banking system? What is the change in the
money supply?
b) Suppose that the required reserve ratio is 10 % and you withdraw $ 40,000 from ABC Bank. What is
the money multiplier? What is the total decrease in deposits in the banking system? What is the change
in the money supply?
Q37. Suppose that in an assumed economy people hold cash at a rate of 20 percent of deposits, the
reserve requirement is 20 percent of deposits, and monetary base is $ 6,000 billion.
1 What is the money multiplier?
2 What is the money supply?
3 What should the central bank do in the open market if it wants to increase the money supply by
$ 40 billion? Illustrate graphically.
4 How should the central bank change the reserve to deposit ratio to increase the money supply
by $ 40 billion? Illustrate graphically.
Topic 5. Aggreagate Demand and Aggregate Supply and relative with Phillips Curve
Q76. Suppose a natural disaster makes aggregate supply shift left. What can the government do to get
the economy back to the natural rate of output? What would the consequences of this action be for the
general price level?
Q77. An economy is in equilibrium with potential output and natural rate of unemployment. Suppose
that many important trade partners fall into recession and buy fewer goods and services from this
economy.
a) Explain short run effects of this event, on prive level, total output, inflation and unemployment rate in
both $A D-A S$ and Phillip-curve models
b) Explain long run effects of this event on price level and total output in AD-AS model.
Q78. In 2020, Covid-19 makes people become pessimistic about future work and income. Explain effects
of this event on supply and demand in the market for final goods and services, what happens to overall
price level and total output?
Q79. Explain three effects on aggregate demand if the government increases public spending. Increase
consumption, investment, multiplier effect
Q80. Use the AS-AD diagram to explain what would happen to output, price level, and unemployment
rate in short run in each of the following cases. Illustrate your answer on AS-AD diagram.
a) The stock market booms
b) Our government removes tax on imported materials
Q81. Let's use the AS-AD model to analyze the impact of the boom of the stock market on the domestic
output, overall price level, and unemployment in short-run.
How would the government employ the fiscal and monetary policy to help st abilize the price level?
Draw the AS-AD diagram to illustrate your answers.
Q82. The government spends $ 5 billion to buy police cars.
a) Explain why aggregate demand might increase by more than $ 5 billion.
b) Explain why aggregate demand might increase by less than $ 5 billion
Q83. Assume that a country is in its long - run equilibrium.
a) The Government increases spending on national defense. What will happen to output, price level and
unemployment in the short run using an AD− AS diagram?
b) To stabilize output, should the Government do expansionary policies or contractionary policies.
Describe how the Central bank uses their tools for these policies.
Q84. Let's use the AS-AD model to analyze the pessimism of business community on the domestic
output, overall price level, and unemployment in short-run.
Q85. How would the government employ the fiscal and monetary policy to help stabilize the output
level? Draw the AS-AD diagram to illustrate your answers.
Q86. Suppose the economy is in short-run equilibrium. Use the $A D-$ $A S$ model to predict short-run
changes to real GDP and the aggregate price level if commodity prices suddenly increase. Explain your
reasoning.
Q87. Assume the economy is in short-term equilibrium. Use AS-AD model to predict the change in real
GDP and aggregate price level if the expected rate of return decreases.
Q88. Assume that a country is in economic recession.
a. Use AD-AS diagram to illustrate the current state of the economy.
b. Describe how the government could close the recessionary gap using fiscal policy. Demonstrate on
the graph.
c. Explain how the effect of fiscal policy is depended on the marginal propensity to consume.
Topic 6. Open economy and Exchange Rate

Q64. Use the supply-demand approach to analyze the impact of these events on exchange rate
VND/USD. Illustrate on the diagram

a. USD interest rate tends to decrease

b. Many Vietnamese wants to stay at home rather than traveling abroad due to Covid 19 pandemic.

Q65. Use the supply-demand approach to analyze the impact of these events on exchange rate
VND/USD. Illustrate on the diagram

a. Vietnam's inward foreign investment tends to decrease

b. Many Vietnamese do not want to go abroad for vacation.

Q66. Use the supply-demand approach to analyze the impact of these events on exchange rate
VND/USD. Illustrate on the diagram

a. American consumers cut their spending due to a recession

b. The interest rate of VND increases and more people want to keep VND-denominated assets.

Q67. Use the foreign exchange market to explain what would happen to exchange rate VND/yuan (yuan
is Chinese currency) in each of the following cases. Illustrate your answer on the supply-demand
diagram.

a) Chinese government locked down the whole economy and Vietname exports to China sharply
declined

b) The interest rate of yuan increases relative to VND, and the capital markets between two countries
are highly open.

Q68. Suppose that more American tourists come to Vietnam. Use the model of foreign exchange market
to explain what would happen to the exchange rate E(VND/USD) and the quantity of USD exchanged in
the market.