Macroeconomics, 9/e

Campbell R. McConnell, University of Nebraska, Lincoln
Stanley L. Brue, Pacific Lutheran University
Thomas P. Barbiero, Ryerson University

Economic Growth and the New Economy

Internet Application Questions


1		Go to: www.brook.edu/comm/policybriefs/pb060/pb60.htm . Answer the following questions (after reading pages 390-396 of the text): According to the text, what is the "New Economy"? What are some of its characteristics? According to Alan Blinder, why is productivity so important in an economy? Outline two recent explanations for the sudden increase in productivity in the U.S. during the late 1990's. According to the textbook and the Blinder paper, what are some of the macroeconomic effects of the New Economy? Consider the concepts of inflation and NAIRU (the natural unemployment rate) in your answer.



2		Go to: http://www.economics.about.com/library/weekly/aa072400.htm and answer the following questions: According to John Irons, what are some of the components that have caused the development of the new economy? Briefly explain. What positive effects has the new economy had upon the United States (and Canada)? Why does Irons argue that the "new economy" may really not be all that new?

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