Reference no: EM131507801

1. What is the equation that Blanchard offers to describe wage-setting? What are the factors that he says affect wage-setting?

2. What is the equation that Blanchard offers to describe price-setting?

3. How does he derive what he calls the "natural" or structural" rate of unemployment?

4. How does he model and explain the inflation-unemployment tradeoff?

5. What is meant by the "NAIRU"? How does Blanchard explain variations in it?

6. How does Blanchard's IS-LM-PC model work? How does aggregate demand affect output and inflation there in the short-run? How can monetary policy affect things in the medium run?

7. What are the key neoclassical elements in Blanchard's IS-LM-PC model? How is it like Knut Wicksell's story of what happens if the market rate of interest differs from the natural rate of interest?

8. How do the New Keynesians explain sticky wages and prices? What role do sticky wages and prices play in Blanchard's model?

9. How did John Maynard Keynes argue that sticky wages and prices are not necessary to have involuntary unemployment? How did he argue that investment determines saving?

10. How does Laurence Meyer present the new consensus macroeconomics, which is also called the new neoclassical-Keynesian synthesis? What is neoclassical and what is Keynesian in it? Why does Meyer call it "monetarism without money"?

11. Does Meyer's new consensus macro model clear up some things in Blanchard's IS-LM-PC model?

12. How does the Kaleckian-Keynesian model we looked at determine prices, output, and employment? What is the role of the mark-up in this?

13. How does the Kaleckian-Keynesian model describe the relation between output growth and price inflation? How is it different from Blanchard's IS-LM-PC model results?