海南大学2008-09学年度第2学期《宏观经济学》答案(A卷) Please answer the Questions（每题10分，共同100分) 1.Explain what happens to consumption,investment,and the interest rate when the government increases taxes. 1.When the gov ernment increases taxes,disposable income falls,and therefo consumption falls as well.The decrease in consumption equals the amount that taxes increase multiplied by the marginal propensity to consume(MPC).The higher the MPC is,the greater is the negative effect of the tax increase on consumption.Because output is fixed by the factors of production and the production ase ve not c d,the decreas mption must be offset by an increase in investment.For in rise,the real interest rate must falL.Therefore,a taxincrease leads to a decrease in consumption,an increase in investment,and a fall in the real interest rate. ing to the neoclassical theory of dist ution the real wag ed by any worker equals that worker's marginal productivity.Let's usethisinsight to examine the incomes of two groups of workers:farmers and barbers. a.Over the past century,the productivity of farmers has risen substantially because of technological progress.According to the neoclassical theory,what should have happened to their eal wage? b.In what uni ts is the real wage discussed d in part(a)measured? c.Over the same period,the productivity of barbers has remained constant.What should have happened to their real wage? d.In what units is the real wage in part(c)measured? mers and being barbers. cal move frecly between being fardb obility imply for th ages of fa f.What do your previous answers imply for the price of haircuts relative to the price of food? g.Who benefits from technological progress in farming-farmers or barbers? b.The real wage in(a)is measured in terms of farm goods.That is,if the nominal wage is in dollars,then the real wage is W/PF,where PF is the dollar price of farm goods. c.If the marginal productivity of barbers is unchanged,then their real wage is unchanged. d.The real wage in()is measured in terms of haireuts.That is if the nominal wage is in dollars,then the real wage is W/PH,where PH is the dollar price of a haircut. e.If workers can move freely between being farmers and being barbers,then they must be paid the same wage w in each sector. 海南大学 2008-09 学年度第 2 学期《宏观经济学》答案(A 卷) Please answer the Questions（每题 10 分，共同 100 分） 1.Explain what happens to consumption, investment, and the interest rate when the government increases taxes. 1.When the government increases taxes,disposable income falls,and therefore consumption falls as well.The decrease in consumption equals the amount that taxes increase multiplied by the marginal propensity to consume(MPC).The higher the MPC is, the greater is the negative effect of the tax increase on consumption.Because output is fixed by the factors of production and the production technology,and government purchases have not changed,the decrease in consumption must be offset by an increase in investment.For investment to rise, the real interest rate must fall. Therefore, a taxincrease leads to a decrease in consumption, an increase in investment,and a fall in the real interest rate. 2.According to the neoclassical theory of distribution,the real wage earned by any worker equals that worker’s marginal productivity. Let’s use this insight to examine the incomes of two groups of workers:farmers and barbers. a.Over the past century,the productivity of farmers has risen substantially because of technological progress.According to the neoclassical theory, what should have happened to their real wage? b. In what units is the real wage discussed in part (a) measured? c.Over the same period,the productivity of barbers has remained constant.What should have happened to their real wage? d. In what units is the real wage in part(c)measured? e.Suppose workers can move freely between being farmers and being barbers. What does this mobility imply for the wages of farmers and barbers? f.What do your previous answers imply for the price of haircuts relative to the price of food? g.Who benefits from technological progress in farming—farmers or barbers? 2. a.According to the neoclassical theory,technical progress that increases the marginal product of farmers causes their real wage to rise. b.The real wage in(a)is measured in terms of farm goods.That is,if the nominal wage is in dollars,then the real wage is W/PF, where PF is the dollar price of farm goods. c.If the marginal productivity of barbers is unchanged,then their real wage is unchanged. d.The real wage in(c)is measured in terms of haircuts.That is,if the nominal wage is in dollars,then the real wage is W/PH,where PH is the dollar price of a haircut. e.If workers can move freely between being farmers and being barbers,then they must be paid the same wage W in each sector