1. In Mankiw's Why It Matters from ch 34, Mankiw says that we got all three policy interventions because the recession was so severe in 2009. Please list those three policy interventions. 2. Explain the crowding-out effect using Figure 5 from 34-2e in Ch 34. 3. Using the cartoon from 34-3b, the Case against Active Stabilization Policy, please comment on any possible problems of monetary and fiscal policies to stabilize an economy. 4. The Fed increases the money supply through the open-market operation. Explain the impact of this increase in the interest rate on output and the price level in the short/long run. Video Problem Walk-Through: Using the Theory of Liquidity Preference to Analyze a Reduction in the Reserve Requirement in Ch 34 has the answers. 5. Suppose the government increases spending by $800 billion, and suppose the marginal propensity to consume is 0.70. By how much will aggregate demand expand altogether after the multiplier effect (ignoring any crowding out)? Video Problem Walk-Through: Estimating the Impact of a Reduction in Government Spending on Aggregate Demand in Ch 34 has the same question with different numbers. 6. Why did President Carter lose the presidency to his challenger, Ronald Reagan in 1980? Your answer needs to be based on Mankiw's Why It Matters in Ch 35. 7. In ConceptClip: Phillips Curve in Ch 35, describe what Milton Friedman and Edmunds Phelps talked about Phillips curve in the long run. 8. Suppose a supply shock from an increase in oil prices reduces aggregate supply. Show the effect of this shock on the long-run and short-run Phillips curves. Video Problem Walk-Through: Analyzing an Adverse Supply Shock and Subsequent Monetary Policy Options in Ch 35 has answer keys. 9. From Mankiw's Why It Matters in ch36, who did Mankiw call the great economist? 10. Suppose the sacrifice ratio is 4. How much output would be sacrificed to reduce inflation from 10% to 5%? To find solutions to this question, you need to review the Video Problem Walk-Through: The Costs and Benefits of Reducing Inflation in Ch 36. O OO W 51 OF 2:43 PM 12/4/2022 194 & 6 8 9 backs Y G H K B N M