Analyze the effect of a negative shock to technology in real
business cycle model. How does...
Analyze the effect of a negative shock to technology in real
business cycle model. How does the new keynesian model differ from
the real business cycle model?
1.
In a real business cycle, analyze the effect of a negative shock to
technology (a negative shock to z) that lasts for one period. What
is the effect when the shock persists for more than one period?
2. If there was a change in preferences in real business
cycle, such as the representative agent valued leisure more and
less for consumption goods. How would output and emploment be
affected by this change?
Thank you!
List the three assumptions of the classical model, and illustrate
how a negative shock to AD would affect the labor market and the
market for goods and services. Then show how a sudden desire on the
part of households to save more would affect the market for
loanable funds , as well as total demand for goods and services in
the classical system. In both parts, explain clearly and label all
graphs completely.
Based on keynesian model, analyze effect of increase in money
supply on level of real income, price level, money wage and
interest. Please analyze with diagram
We investigate the effect on the economy of a negative shock to
consumer confidence. Assume that the behavior of the economy is
given by the following equations:
Goods Market:
Y = C + I + G (Goods Market equilibrium)
C = Z + 0.5(Y − T) (Consumer Demand)
I = 60 − 50r (Investment Demand)
G = T = 100 (Government Budget)
Money Market:
M/P = L(Y, r + e) (Money Market Equilibrium)
L(Y, r + e) = 0.1Y −...
how to use the four business cycle theories of new keynesianism,
real business cycle theory, monetarist theory and Austrian school
to respectively explain the occurrence of the great recession and
whether appropriate fiscal and monetary policy measures have been
taken?
how to use the four business cycle theories of new keynesianism,
real business cycle theory, monetarist theory and Austrian school
to respectively explain the occurrence of the great recession and
whether appropriate fiscal and monetary policy measures have been
taken?
As an economic advisor, you are worried about the macroeconomic
effect of a negative demand shock on the economy (prices, income
and output). Discuss (and illustrate graphically) the possible
policies the country could implement to reduce these effects.
(Hint: Using the Aggregate Demand and supply Model)