Question
In: Economics
3. Explain the mechanism by which productivity shocks are propagated in the standard RBC model.
3. Explain the mechanism by which productivity shocks are propagated
in the standard RBC model.
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
4. Given that productivity shocks are exogenous according to RBC theory, what is it that real...
4. Given that productivity shocks are exogenous according to RBC
theory,
what is it that real business cycle models need to explain?
Use the standard AD/AS model augmented with financial shocks to answer the following questions: a) Show...
Use the standard AD/AS model augmented with financial shocks to
answer the following questions:
a) Show the effect of an increase in credit spreads due to the
failure of a large financial institution. What happens to output
and inflation in the short-run? What happens in the long-run?
b) Suppose that a financial crisis makes it difficult for firms
to finance R&D expenditures. What effect might this have on
potential output? Why?
c) Show graphically the effect of a financial crisis...
Explain Ben Bernanke’s financial accelerator model. Which transmission mechanism is it associated with?
Explain Ben Bernanke’s financial accelerator model. Which
transmission mechanism is it associated with?
The standard RBC model predicts that a positive shock to government spending adversely affects private consumption...
The standard RBC model predicts that a positive shock to
government spending adversely affects private consumption spending.
Provide two different changes to the standard RBC model that would
generate a positive relationship between C and G. You don’t have to
solve the model again to answer this question. Just focus on the
intuition and the mechanisms that would generate the result. (10
points)
Use the dynamic AD-AS model to explain circumstances by which productivity and technological changes can lead...
Use the dynamic AD-AS model to explain circumstances by which
productivity and technological changes can lead to an increase in
unemployment. Discuss what happens to the price level depending on
the assumptions you make.(please explain in detail)
In the augmented Solow model, which of the following shocks generate jump (contemporaneous change) in the...
In the augmented Solow model, which of the following shocks
generate jump (contemporaneous change) in the evolution of any
per-efficiency unit variable k,y,c,i:
a lower saving rate (s).
a decrease in population growth (n).
a decrease in productivity (A).
an increase in depreciation rate (δ).
Consider the standard Solow growth model. Let productivity be denoted by A and let the production...
Consider the standard Solow growth model. Let productivity be
denoted by A and let the production function be Y=AF(K,N). For
simplicity, assume that there is no population growth (n=0 so that
N'=N). Let depreciation be denoted by d and the savings rate by
s.
a. Derive the per capita capital accumulation equation for k=K/N
and the steady state level of capital per worker, kss. Please show
the details of your derivation to earn points. Draw the Solow model
graph showing...
Consider the standard Solow growth model. Let productivity be denoted by A and let the production...
Consider the standard Solow growth model. Let productivity be
denoted by A and let the production function be Y=AF(K,N). For
Simplicity, assume that there is no population growth (n=0 so that
N' = N). let depreciation be denoted by d and the savings rate by
s.
a) Derive the per capita capital accumulation equation for k=K/N
and the steady state level of capital per worker, ??^ss . Please
show the details of your derivation to earn points. Draw the Solow...
explain the difference between gross primary productivity and net primary productivity. Which is larger, and why?...
explain the
difference between gross primary productivity and net primary
productivity. Which is larger, and why? Why is total primary
production always greater than total secondary
production?
Explain why the productivity standard for the distribution of income entails rewarding people based on their...
Explain why the productivity standard for the distribution of
income entails rewarding people based on their contribution to
society’s total output. Why does the productivity standard
typically fail to yield an equal distribution of income?
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