Macro Paper:

1. Visit the following website:
• Using information from section 2, table 2.1, get current information for the two most recent quarters

2. The information you will need to find and/or calculate are the following:
• Nominal Personal Savings ( S )
• Note: I want the actual figure
• Nominal Disposable Income
• Note: I want the actual figure
• Nominal Personal Taxes
• Note: I want the actual figure
• Nominal Personal Income
• Note: I want the actual figure
• Nominal Personal Consumption ( C )
• Note: I want the actual figure
• Note: Round your answer to 2 decimal places (dollars and cents)
• Note: Round your answer to 2 decimal places (dollars and cents)
• Note: Round your answer to 2 decimal places (dollars and cents)
• Note: Round your answer to 2 decimal places (dollars and cents)

3. In one quarter, the unemployment rate increased. The next quarter, it came down. Mary says that’s good
news; Alice says no.And Jack isn’t sure if it’s good or bad news. Who’s right and why? Make sure you explain
the different kinds of unemployment. And limit your answers to the economics! In other words, no politics or
any other outside forces.

4. Visit and get the latest GDP figures from section 1, table 1.1.5.
Based upon your earlier information from above, and assuming we could achieve an output level of $16.42
• Where exactly should the NRU be in relation to the current unemployment rate? Make sure you explain
what the NRU is
• Discuss whether it’s possible for the actual relationship between the NRU and the current
unemployment rate to be different than your answer to the above
• Are we at equlibrium right now? Explain your answer, including what equlibrium actually is
• What are the different kinds of economic gaps can economy have? Which specific one(s) do we have right
now? And on which specific gap should we be focusing our attention on when managing the economy?
• A member of Congress, or Parliment as it’s called in some countries, wants to make a recommendation
about managing this economy. What kind of economic policy(ies) would this person be using? In other words,
would it be fiscal policy, monetary policy, neither, or some combination of the two? Make sure you discuss
what fiscal and monetary policy are
• Congresswoman Harland wants to manage the economy with just tax changes. By exactly how much should
taxes be changed or adjusted? Make sure you say if this would be an increase or a decrease?
• Assuming we do exactly what she wants, how would this effect equilibrium, aggregate demand, aggregate
supply, inflation, consumption, and aggregate expenditures
• Congressman Mickelson wants to handle this economy by adjusting government spending. By exactly how
much should government spending be adjusted or changed? Make sure you specify if this will be an increase or a
• Assuming we do exactly what he wants, how would this effect equilibrium, aggregate demand, aggregate
supply, inflation, consumption, and aggregate expenditures

5. Jack calculated MPC and MPS and noticed something weird (strange). MPC came out to be greater than
one. And his MPS was negative. Is it possible to have a negative MPS? Is it possible to have an MPC higher
than 1? And if so, what would all this tell you about consumers? Explain your answers.

6. Suppose the Central Bank were to increase the amount of required reserves banks must hold. How would
this effect:
• The required reserve ratio, excess reserves, and total reserves
• The spending, investment, money, and deposit multipliers. In your answer, be sure to explain what each
of these is
• APC, APS, MPC, and MPS
• Investment demand, aggregate expenditures, demand, and expenditures, and inflation

Important Notes:
1. Make sure you limit your entire paper’s focus to the questions being asked
2. No outside resources and/or researching may be used! You are not allowed to do things such as surfing
the net, use other books & resources, asking other students, friends, family, etc.
3. This is strictly individual work, not group! You are not permitted to work with anybody else on this.
You need to do your own work or it’s considered cheating! So no asking classmates, tutors, family, friends,
coworkers, etc for assistance. This includes reviewing or reading your paper!
4. Bullets are not allowed! Your entire paper needs to be in paragraph form with just text
5. Graphs are not required. But if you decide to include any, they will not count toward the 7 pages!
They are purely supplements to your paper’s textual content. And may help or hurt your grade depending upon
their relevance and accuracy. But if you decide to have graphs, put them at the very end of your paper (pages
8 and above). And make sure you label the graphs so I know what’s what. And in your paper’s text, be sure to
indicate which graph you’re referring to. For example, graph 1 or figure 2. This way, I can match things up
and know exactly where they go.
6. Do not include my questions in your paper! Your entire paper must be devoted entirely to answering the
specific questions I’m asking. So your whole paper is the analysis of my questions
7. Your entire paper must be written in paragraph form! So write it as if you were doing an English essay
with each new paragraph indented 5 spaces.
8. No quoting the book or any other materials! Everything must be in your own words. And because you are
not permitted to quote others or do outside research, you won’t need a page or section for citations
(footnotes, endnotes, bibliography). Your entire paper will be paragraphs answering my questions. So you
cannot have anybody else helping you. And/or just checking over your work by giving it a quick or in-depth
9. No working on your paper during class! This will result in an automatic 50% grade reduction to your
paper grade. So your paper needs to be done on your own time outside of class, not during it.
10. Your paper must be typed. No handwritten ones will be accepted and you’ll get a zero! However, if you
choose to include any graphs, they need to be handwritten. But the paper’s textual content has to be typed.

General Notes:
• I want you to submit a MS Word document that clearly explains your answers to these questions.
• You will be submitting your papers online through Blackboard with a copy given to your instructor.
• Note: The deadline for both copies is exactly the same as the online! So both copies need to be turned
in by the deadline. And if you’re not able to make it to class, you can drop off the paper copy at the Print &
Mail Center (ground floor of MLT). They will give you a receipt, which will be time and datestamped. So I will
know exactly when it was turned in. So if you need to drop it off with them, it still needs to be turned in by
the paper’s deadline.
• No cover sheet (page) and/or report cover is necessary.
• The very first line of your paper should include your name, the course (macro), and the quarter
centered across the page. You will then skip one line and begin your analysis.
• Margins must be 1 inch top, left, right, and bottom. And the font has to be Arial 12 point
• Your text must be double-spaced, including the space between paragraphs. So each line, including new
paragraphs is all double-spaced! And just 1 double-spaced line separating paragrphs.So the separation of each
paragraph is exactly the same as the text.All paragraphs must have the first line indented 5 spaces, which is
the standard for indentation
• For all calculated answers, I want you to clearly explain how you got your answers.
• This includes things like general formulas you used. An example of this would be something like:
operating profit = gross revenue – .operating expenses
• So think of this as a step-by-step walkthrough
• Note # 1: Put all your calculation breakdowns at the very end of your papers because this doesn’t
count toward the 7 pages. In other word, the 7 pages is your analysis. So I want you to separate out the
analysis portion from your calculations. Plus, it keeps all your calculations in one spot. Something that
makes it easier to look at and evaluate.
• Note # 2: The accuracy of your calculations is being taken into consideration for grading purposes. So
you are being graded on the depth of your analysis, level of detail, accuracy and correctness, and ability to
follow instructions!
• Watch your terminology! You need to be very specific and use correct terminology. So variables like X,
Y, or Z won’t suffice (be acceptable). And will hurt your grade!
• Your paper must be a full 7 pages in length, which does not include graphs and calculations. In other
words, the text portion of your paper answering my questions is to be a full 7 pages.
• Anything beyond the 7 page limit will be completely ignored! And anything less than the full 7 pages
will hurt your grade. So you are being given a very specific page limit with regards to how much space is
allowed for the answering of my questions.



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