Question

DON'T COPY FROM OTHER ANSWER, PLEASE.

The first page use for diagrams and second page for explanations.

QUESTION:-

Compare the following macro economic models in terms of Real Costs of Reducing Inflation :

1) -The Keynesian Model.

2) -The Monetarist Model.

3) -The New Classical Model.

While answering this question :

a)- First, use Phillips and AS-AD curves for each alternative models above and show the real costs of disinflationary policies on these diagrams.

- Diagrams should be clear and understandable; shifting parameters should be specified for each case.

- Compare the results and write your brief comments on them.

b)- Second, compare these three models in terms of the theoretical structure (assumptions, hypotheses, etc.) behind these results :

- Why, for some models, can the real costs of lowering inflation be so high while in others be lower or zero ?

First page use for the diagrams; - Second page for the theoretical explanations.

PLEASE SOLVE URGENT. WILL RATING. THANKS IN ADVANCE.

Answer 1