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- 1. 2. Taylor Rule Assume an economy with an AE curve with a slope of 1 where a one percent change in real interest rates changes real GDP by 1 percent with a one year lag. This economy is also characterized by an ouput gap Phillips curve where a one percentage point change in the output gap affects inflation with a one year lag. From Okun’s law for this economy a 1 percent change in real GDP changes the unemployment rate by .5%. The natural rate of unemployment for this economy is 5%. The neutral real rate of interest rn = 3.0 %/ and the target rate of inflation ΠT = 2%. Assumes that policy makers inherit an economy at its natural rate of unemployment (5%), 6 percent inflation in year 0, and decide to use an aggressive Taylor rule of: r = 3% + 1.0 (Y-Y*/Y*) + 1.0 (Π – 2%) Fill in the following table assuming that policy makers have a correct model of the economy, follow the aggressive Taylor rule, and the economy has the two one period lags. Remember that in each year the policy choice for the real interest rate changes. (Your policy choice in year 0 affects GDP in Y in year 1 and how that policy affects GDP in year 1 affects inflation in year 2. Hint. Use the Taylor rule to pick r in period 0 based on information in table. That r chosen for year 0 will have an impact on Y (and u based on Okun’s law) in year 1, but will have no impact on inflation until year 2 depending on the output gap that opens up in year 1.
- 4. 1 2 3
- 5. 4 Running Head: HISTORY STUDY GUIDE 1 HISTORY STUDY GUIDE 2 History Study guide Name Institution History Study guide
- 6. What was the Argument of Alfred T. Mahan? Alfred T. Mahan argument was that the success of international politics lied in naval power. What was James Monroe’s position in the Monroe Doctrine? His position was that Americans needed to be free from future European colonization and that the European should not interfere in the sovereign countries' undertakings. According to him, United States should stay neutral in European wars and wars between European powers and their colonies. He also stated that it would be a hostile act towards United States for the Europeans to consider new colonies or interference with independent countries. How did Woodrow Wilson’s position change concerning US Involvement in WWI and what were his 14 Points? In I914, Woodrow urged all Americans to stay neutral in the case of the European war. After reelection in 1916, Wilson tried to end the war through active mediation. However, the Germans resumed unrestricted submarine warfare. On April 2, 1917, the president told Congress to declare war. Therefore, the Germans made Wilson change position on the US involvement in WWI. The 14 points were: 1. Open agreements of peace and clear diplomacy. 2. Total freedom of the seas. 3. The elimination of economic and business barriers. 4. The termination of arms races. 5. National self-determination to incorporate adjustment of colonial allegations
- 7. 6. Evacuation of the entire Russian terrain. 7. Retreat and restoration of Belgium. 8. The whole French region restored. 9. Italian frontiers modified. 10. Granting Austria-Hungary “opportunity to autonomous development." 11. Evacuation and giving of independence to Rumania, Montenegro and Serbia. 12. Turkish section of the Ottoman Empire to become sovereign; nations under Turkish reign to become self - governing; open up Dardanelles to all. 13. Independent Poland with the right of entry to the sea to be created. 14. Formation of a "general union of nations to assure political independence and region integrity to "enthusiastic and small states alike." What was Yellow Journalism? Who are individuals who used it? Yellow journalism was a technique of newspaper reporting that concentrated on sensationalism over facts. It was used by New York City newspaper’s radical publishers William Randolph Hearst and Joseph Pulitzer. What effect did the Zimmerman Note have on the US during WWI? The Zimmermann note aided in turning U.S. public interpretation against Germany during World War I and reinforced the advocates of U.S. attempt into the war. It is said
- 8. that a German telegram was sent to the Mexican government, but it was intercepted by the US. Germany was trying to get Mexico to join forces with them to attack the US because of the vicinity of the two countries. What was the Roosevelt Corollary? Give examples of it in action The Roosevelt Corollary was a supplement to the Monroe Doctrine. According to it, the United States was the only country with the right to interfere with Latin American countries. European countries were allowed to intercede in Latin American undertaking. The only way that the U.S had a right to participate was if the affairs or European countries were endangered. Examples of it in action The Roosevelt Corollary added that he had the right to apply military force in Latin American states in order to keep out European countries. Through redefining the Monroe Doctrine, Roosevelt turns out to be truly historic. This leads the United States into a phase of conflict with the Caribbean and Central America people, which was a quite crucial part of American imperialism. Define Social Darwinism. It is a theory that projected the idea of survival for the fittest in the late 19th century. It mostly means the social policies re justified on the idea of struggling to exist. Define Imperialism? How was the US an Imperial nation between 1898-1920? It is the broadening of national supremacy, influence or authority to other countries or locality through policies of direct or indirect control. The US was impartial in that it wanted to
- 9. expand. This is marked by the acquisition of new colonies. Another way was by the Hawaii annexation. America also protected trade routes in Asia and promoted security in the Caribbean. How is the Platt Amendment an example of US Imperialism? The Amendment enhanced the U.S. involvement in Cuban dealings and gave legal grounds to U.S. claims to specific terrains on the island including Guantanamo Bay Naval Base. What happened to the USS Maine? The USS Mine exploded and sunk killing 266 members of the crew. How is the Lusitania similar to the Maine? Both have conspiracy theories in relation to their sinking. Causes and effects of the Spanish American War The principal cause of the Spanish American War was the US’ open support for Cuban independence. The effect of the war was the mysterious sinking of the USS Maine on 15 February 1898. This led to a declaration of War. The net outcome of the War was the loss of Spain's New World Empire and the Cuban Independence. How did Hawaii’s annexation carry out the beliefs of Mahan, Strong, and Fiske? The annexation was to serve mankind by promoting world peace. The Treaty of Versailles did not get the support of a good number of Americans. Who was Emilio Aguinaldo?
- 10. He Was a politician, Filipino general, and an independence leader. He had a significant role during the Philippines' revolution against Spain. He was also involved in the War of Philippine Independence that was against American occupation. He was the first president of Philippine at a tender age of 28 years. Jose Marti? He was a Cuban, freedom fighter, patriot and poet. He is seen as a national hero even though he died before Cuba’s independence. William Randolph Hearst? He was an American newspaper publisher and editor who formed the nation’s predominant newspaper chain. His approaches intensely influenced American journalism. He was also a business owner whose wealthy use and personality left a mark in America’s media. Joseph Pulitzer? He was an American newspaper publisher and editor who aided in establishing the sequence of the modern newspaper. He was one of the most influential journalists in the United States of America at that time. Teddy Roosevelt’s “Big Stick Diplomacy” states that the US should sent its military to Latin American nations in case of a disorder to protect American economic interests How was the Foraker Act demonstrating American Imperialism? It gave the US power and direct control to set up a government in Puerto Rico Archduke Franz Ferdinand assassination caused what?
- 11. It causes a continuous series of diplomatic actions that led inevitably to the occurrence of war in Europe at the end of July 1914. What countries were Allies during WW1? World War 1 allies were Russia, France and Britain MAIN causes of WWI were? The main causes were Imperialism, Militarism, Alliance and nationalism. The 14 Points main ideas were? To abolish secret treaties, to establish free navigation on high seas, as well as encourage free trade. It was also meant to reduce Armaments. Another idea was to ensure that people’s interest were considered when making colonial allegations. Challenges to US entry in WWI were what? The U.S lost a lot of lives in the war. A second challenge was Provision of food to the people which was highly affected by the war. Restarting their industry was also an enormous challenge as well as restarting peaceful relationships with the neighboring countries Trench Warfare, mustard gas, airplanes all changes war in which ways? Through the technology, more efficient weapons made it much easier to kill the enemy and eliminated chivalry. Casualties increased, and gutter warfare was introduced to keep land forces safe while not in battle due to the ability to eliminate enemies from a significant distance.
- 12. Define Anti-Semitism It is the behavior or belief of hostility towards Jews just because they are Jewish. Compare the Nuremberg Laws with the Jim Crow Laws. They were both racist laws that segregated specific races. Nuremburg was a law against the Jewish people while Jim Crow was against the African Americans. To a considerable degree they both ratified segregation. The Jim Crow laws segregated public places, public schools and public transportation, washrooms and eateries for whites and blacks and the U.S. military. The Nuremburg Laws went a step ahead. In fact, they denied Jews of citizenship and outlawed marriage between Jews and other Germans. What is the policy of Isolationism? It is the doctrine of putting aside ones country from the undertakings of other nations. This is achieved by fusing to make alliances, foreign trade, and alien economic commitments among others. It is devoting al the efforts of a country of its own affairs and staying at peace as they avoid foreign engagements and responsibilities. In what ways did the US militarily gain of victory in WWII (Bombing, massive mobilization, etc.) High morale of the US military made the Germans loose theirs. The use of allied forces, extra man power and leasing of weapons also played a great role. Know the Characteristics of Totalitarian Leaders They have a Strong Nationalism, promote class struggle and have pronounced statism. Their individualism is less that their collectivism. They consider the government equivalent to a
- 13. supreme leader and a nation equal to a government. The leader sits at the middle of the movement and strives by continuously changing personnel and spinning intrigues. They are always sure because they believe without them everyone else is lost. They do not stomach criticism and is monopolistic in their explanation. The leaders do not need to tell the truth as they are infallible and dominate decision making processes. Name and Identify the 8 Stages of Genocide? 1. Classification - this is categorizing of people in certain groups in terms of race or tribe etc. 2. Symbolization - people are given names or other symbols to their classifications. For example, People are named “Jews”, or differentiate by colors or dressing. 3. Dehumanization - This entails one group denying the other humanity and seeing them as maybe animals or insects. 4. Organization - genocides are usually organized normally by the state, regularly using militias to offer deniability of state responsibility. Organization may also be informal 5. Polarization - Extremists steer the groups apart. Hate groups disseminate polarizing propaganda. Laws may deny social interaction or intermarriages. 6. Preparation – in preparation victims are identified and separated from the rest because of their ethnic or religious identity. Death lists are drawn up, and members of targeted groups are forced to wear identifying signs. 7. Extermination begins after preparation and quickly becomes the mass killing legally known as “genocide.” It is “extermination” to the killers because they do not perceive their victims to be totally human.
- 14. 8. Denial is the eighth step that usually follows genocide. It is among the surest pointer of further genocidal massacres. The perpetrators of genocide try to destroy evidence by exhuming the mass graves, burning the bodies and intimidating the witnesses. US History Exam II-Cold War and Post-Cold War Terms What is NATO? Warsaw Pact? “Iron Curtain” Domino Theory Containment Policy *Know Methods “New World Order” “Axis of Evil” Mujahadeen Taliban Names Harry Truman George Kennen Dwight Eisenhower Ngo Dinh Diem
- 15. Ho Chi Minh John F Kennedy Nikita Kruschev Lyndon Johnson Richard Nixon Jimmy Carter Ronald Reagan George Bush (Both) Barack Obama Events/Misc Potsdam/Yalta Causes of Cold War tension Marshall Plan Truman Doctrine Korean War causes/effects Bay of Pigs Methods for fighting in Vietnam Reasons for failure in Vietnam Cuban Missile Crisis
- 16. Fall of the Berlin Wall Tet Offensive Tonkin Gulf Incident Iran-Contra Affair Soviet Invasion of Afghanistan response Persian Gulf War, Somalia, and Panama as examples of “New World Order” 9/11 Wars in Iraq and Afghanistan Al-Qaeda 1.. Taylor Rule Assume an economy with an AE curve with a slope of 1 where a one percent change in real interest rates changes real GDP by 1 percent with a one year lag. This economy is also characterized by an ouput gap Phillips curve where a one percentage point change in the output gap affects inflation with a one year lag. From Okun’s law for this economy a 1 percent change in real GDP changes the unemployment rate by .5%. The natural rate
- 17. of unemployment for this economy is 5%. The neutral real rate of interest rn = 3.0 %/ and the target rate of inflation ΠT = 2%. Assumes that policy makers inherit an economy at its natural rate of unemployment (5%), 6 percent inflation in year 0, and decide to use an aggressive Taylor rule of: r = 3% + 1.0 (Y-Y*/Y*) + 1.0 (Π – 2%) Fill in the following table assuming that policy makers have a correct model of the economy, follow the aggressive Taylor rule, and the economy has the two one period lags. Remember that in each year the policy choice for the real interest rate changes. (Your policy choice in year 0 affects GDP in Y in year 1 and how that policy affects GDP in year 1 affects inflation in year 2. Hint. Use the Taylor rule to pick r in period 0 based on information in table. That r chosen for year 0 will have an impact on Y (and u based on Okun’s law) in year 1, but will have no impact on inflation until year 2 depending on the output gap that opens up in year 1.