Practice exam questions for macroeconomics

I hope my macro class has a good handle on these:

1. Which aspect of the macroeconomy does real business cycle theory find most difficult to explain?  Why?  What is the most convincing attempt to "save" RBC in the area you outline?  Does it work?

2. Let us say that the seasonal business cycles literature taught us something about traditional business cycles.  What might the policy implications be?  You could spin out several different scenarios, but focus on the most plausible one.

3. Assume that the expectations theory of the term structure of interest rates were correct.  Would this strengthen the case for monetary or for fiscal policy, and why?

4. Write your own exam question and answer it.  You will be graded on the quality of the question as well as your answer.  The submission of "Write your own exam question and answer it" would give you, for a philosophy class, an "A+", but for macroeconomics, a "C minus".

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