ECON 2101 - Principles of Macroeconomics

Andrew Wenn, Graduate Assistant

     Tutor for Macroeconomics, sections 001 and 002 

Fall 2009

Office Location

Friday Bldg, Room 218-A

  (next door to Stivender)

Hours Available to Students

Monday

  12:00pm - 4:00pm

Tuesday

  3:30pm - 5:00pm

Wednesday

  12:00pm - 4:00pm

Thursday

  11:00am - 1:30pm

Click here to E-mail Andrew (econtutor@uncc.edu) to ask a question or make tutoring appointment.

EXTRA CREDIT OPPORTUNITY #2

This assignment is due NO LATER than Monday, August 9, by 2:00pm.  Do not email - I want it handwritten.

The full 5 points will be given only for complete answers.  Make sure you answer the question that is asked,

no more, no less.  You will need to weigh the marginal benefits and marginal costs to determine if your time

should be spent on this 5-point assignment or on studying for the final exam.  Make an economically sound decision!

The United States is experiencing a high rate of unemployment.

     a.  Identify one fiscal policy action that Congress might initiate to decrease the unemployment rate.

     b.  Assume that the policy you identified reduced unemployment, but the economy is still operating below full employment. 

Using a correctly labeled aggregate demand/aggregate supply graph, show and explain how the action you identified

would affect each of the following:

                   i)  Output

                   ii) Price level

     c.  Briefly explain how the policy you identified would affect interest rates.

     d.  Given that the economy is still below full employment, identify the open market policy the Federal Reserve

could implement to increase the money supply.

     e.  Using correctly labeled graphs, show and explain how an increase in money supply will affect each of the

following in the short run.

                       i) Interest rates

                      ii) Output

                     iii) Price level