曼昆经济学原理第五版答案英文ch34

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1、Chapter34—FIVEDEBATESOVERMACROECONOMICPOLICY13FIVEDEBATESOVERMACROECONOMICPOLICY34WHAT’SNEW:Thedebateonbalancingthebudgethasbeenrecasttobeadebateonreducingthegovernmentdebt.TherearetwonewIntheNewsboxeson“TheBudgetSurplus”and“InflationTargeting.”LEARNINGOBJECTIVES:Bytheendofthischapter,studentsshould

2、understand:Øthedebateconcerningwhetherpolicymakersshouldtrytostabilizetheeconomy.Øthedebateconcerningwhethermonetarypolicyshouldbemadebyruleratherthanbydiscretion.Øthedebateconcerningwhetherthecentralbankshouldaimforzeroinflation.Øthedebateconcerningwhetherthegovernmentshouldreducethegovernmentdebt.

3、Øthedebateconcerningwhetherthetaxlawsshouldbereformedtoencouragesaving.KEYPOINTS:1.Advocatesofactivemonetaryandfiscalpolicyviewtheeconomyasinherentlyunstableandbelievethatpolicycanmanageaggregatedemandinordertooffsettheinherentinstability.Criticsofactivemonetaryandfiscalpolicyemphasizethatpolicyaffe

4、ctstheeconomywithalagandthatourabilitytoforecastfutureeconomicconditionsispoor.Asaresult,attemptstostabilizetheeconomycanendupbeingdestabilizing.2.Advocatesofrulesformonetarypolicyarguethatdiscretionarypolicycansufferfromincompetence,abuseofpower,andtimeinconsistency.Criticsofrulesformonetarypolicya

5、rguethatdiscretionarypolicyismoreflexibleinrespondingtochangingeconomiccircumstances.3.Advocatesofazero-inflationtargetemphasizethatinflationhasmanycostsandfewifanybenefits.Moreover,thecostofeliminatinginflation–depressedoutputandemployment―isonlytemporary.Eventhiscostcanbereducedifthecentralbankann

6、ouncesacredibleplantoreduceinflation,therebydirectlyloweringexpectationsofinflation.CriticsofaHarcourt,Inc.itemsandderiveditemscopyrightÓ2001byHarcourt,Inc.Chapter34—FIVEDEBATESOVERMACROECONOMICPOLICY13zero-inflationtargetclaimthatmoderateinflationimposesonlysmallcostsonsociety,whereastherecessionne

7、cessarytoreducetheinflationisquitecostly.1.Advocatesofreducingthegovernmentdebtarguethatthedebtimposesaburdenonfuturegenerationsbyraisingtheirtaxesandloweringtheirincomes.Criticsofreducingthegovernmen