4. Because of the existence of price stickiness, money is nonneutral in the Keynesian model. Describe the sources of price stickiness and elaborate the link between price stickiness and nonneutality of money.

1. This essay examines the process by which Wang Guowei placed Chinese dramatic history into the modern Chinese literary canon. It explores how Wang formed his idcas on literature, drawing on Western aesthetics to explain, through the notions of leisure and play, the impetus for art creation, and on the Chinese notions of the genesis of literature to explain the psychology of literary creation. In order to establish the literary value of Chinese drama, Wang applied these ideas to the first playwrights of the Yuan dynasty, arguing that theirs was a literature created under the right aesthetic and creative circumstances, and that it embodied the value of "naturalness" which he considered a universal standard for good literature. By producing a scholarly critical history of the origins and nature of Chinese drama, Wang placed drama on a par with other literary genres of past dynasties, thus giving it a renewed status and creating at the same time a new discipline of research. Drama had now become an established literary genre. From Regina Llamas, "Wang Guowei and the Establishment of Chinese Drama in the Modern Canon of Classical Literature"

2. The first most serious problem encountered in teaching Chinese through Chinese literature is, needless to say, the difficulty of the language. There is, of course, the general problem of its almost total unfamiliarity. Chinese is simply not commonly encountered in the American environment, and few American students are spontaneously attracted to studying it. For a native speaker of English to master Chinese sufficiently to enable him to read original Chinese literature and to do research in the field is, needless to say, a formidable task. It requires a far greater expenditure of time and effort than the achievement of a comparable degree of proficiency in almost any other major language of the world. The number of "contact hours" for proficiency in Chinese is likely several times the amount required for a comparable proficiency in French or Spanish. Graduate students, as a result, continue to be plagued by language problems even while they pursue advanced courses in their chosen discipline. In view of the difficulty of the language, we must be especially careful in selecting teaching materials and in our approaches to the problems encountered. From Winston L.Y. Yang, "Teaching Chinese Through Chinese Literature"

2. Give a brief discussion of the real business cycle theory.

3. Explain the uncovered interest rate parity.

5. Assume prices are sticky and that the aim of monetary policy is to stabilise GDP. How does the central bank set interest rate when the economy is hit by recession caused by the fall in consumer confidence?

(a) Find the maximum value of x + y + 3z if x2 + 4y2 + 9z2= 13. Ans:_________

(b) If . Ans:_________

(c) Find the indeinite integraldx.. Ans:__________.

(d) Find the indeinite integral xdx. Ans:___________

(e) Evaluste the double integral. Ans:__________