SOLUTION MANUAL
SOLUTION MANUAL
, INSTRUCTOR’S MANUAL
Charles I. Jones
Macroeconomics
FIFTH EDITION
Anthony Laramie
BOSTON COLLEGE
,W. W. Norton & Company has been independent since its founding in 1923, when William Warder Norton and Mary D.
Herter Norton first published lectures delivered at the People’s Institute, the adult education division of New York City’s Coo
per Union. The firm soon expanded its program beyond the Institute, publishing books by celebrated academics from Amer
ica and abroad. By midcentury, the two major pillars of Norton’s publishing program—trade books and college texts—were
firmly established. In the 1950s, the Norton family transferred control of the company to its employees, and today—with a
staff of four hundred and a comparable number of trade, college, and professional titles published each year—W. W. Norton
& Company stands as the largest and oldest publishing house owned wholly by its employees.
Copyright © 2020, 2018, 2014, 2011, 2008 by W. W. Norton
& Company, Inc. All rights reserved.
Printed in the United States of America.
Media Editor: Miryam Chandler
Associate Media Editor: Christina Fuery
Assistant Media Editor: Aly Grindall
Production Manager: Eric Pier-Hocking
Composition: Westchester Publishing Services
W. W. Norton & Company, Inc.
500 Fifth Avenue, New York, N.Y. 10110-0017
wwnorton.com
W. W. Norton & Company Ltd.
Castle House, 75/76 Wells Street, London W1T 3QT
1 2 3 4 5 6 7 8 9 0
, TABLE OF CONTENTS
Part 1 Preliminaries
Chapter 1 | Introduction to Macroeconomics 1
Chapter 2 | Measuring the Macroeconomy 8
Part 2 The Long Run
Chapter 3 | An Overview of Long-Run Economic Growth 18
Chapter 4 | A Model of Production 27
Chapter 5 | The Solow Growth Model 39
Chapter 6 | Growth and Ideas 51
Chapter 7 | The Labor Market, Wages, and Unemployment 61
Chapter 8 | Inflation 72
Part 3 The Short Run
Chapter 9 | An Introduction to the Short Run 83
Chapter 10 | The Great Recession: A First Look 92
Chapter 11 | The IS Curve 99
Chapter 12 | Monetary Policy and the Phillips Curve 111
Chapter 13 | Stabilization Policy and the AS/AD Framework 121
Chapter 14 | The Great Recession and the Short-Run Model 134
Chapter 15 | DSGE Models: The Frontier of Business Cycle Research 143
iii
SOLUTION MANUAL
, INSTRUCTOR’S MANUAL
Charles I. Jones
Macroeconomics
FIFTH EDITION
Anthony Laramie
BOSTON COLLEGE
,W. W. Norton & Company has been independent since its founding in 1923, when William Warder Norton and Mary D.
Herter Norton first published lectures delivered at the People’s Institute, the adult education division of New York City’s Coo
per Union. The firm soon expanded its program beyond the Institute, publishing books by celebrated academics from Amer
ica and abroad. By midcentury, the two major pillars of Norton’s publishing program—trade books and college texts—were
firmly established. In the 1950s, the Norton family transferred control of the company to its employees, and today—with a
staff of four hundred and a comparable number of trade, college, and professional titles published each year—W. W. Norton
& Company stands as the largest and oldest publishing house owned wholly by its employees.
Copyright © 2020, 2018, 2014, 2011, 2008 by W. W. Norton
& Company, Inc. All rights reserved.
Printed in the United States of America.
Media Editor: Miryam Chandler
Associate Media Editor: Christina Fuery
Assistant Media Editor: Aly Grindall
Production Manager: Eric Pier-Hocking
Composition: Westchester Publishing Services
W. W. Norton & Company, Inc.
500 Fifth Avenue, New York, N.Y. 10110-0017
wwnorton.com
W. W. Norton & Company Ltd.
Castle House, 75/76 Wells Street, London W1T 3QT
1 2 3 4 5 6 7 8 9 0
, TABLE OF CONTENTS
Part 1 Preliminaries
Chapter 1 | Introduction to Macroeconomics 1
Chapter 2 | Measuring the Macroeconomy 8
Part 2 The Long Run
Chapter 3 | An Overview of Long-Run Economic Growth 18
Chapter 4 | A Model of Production 27
Chapter 5 | The Solow Growth Model 39
Chapter 6 | Growth and Ideas 51
Chapter 7 | The Labor Market, Wages, and Unemployment 61
Chapter 8 | Inflation 72
Part 3 The Short Run
Chapter 9 | An Introduction to the Short Run 83
Chapter 10 | The Great Recession: A First Look 92
Chapter 11 | The IS Curve 99
Chapter 12 | Monetary Policy and the Phillips Curve 111
Chapter 13 | Stabilization Policy and the AS/AD Framework 121
Chapter 14 | The Great Recession and the Short-Run Model 134
Chapter 15 | DSGE Models: The Frontier of Business Cycle Research 143
iii
