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?
1) What is the Real Business Cycle Theory say about business cycles? 2) How is the Real Business Cycle Theory different from the Keynesian school of thought? 3) How is the Real Business Cycle Theory different from the Keynesian school of thought? 4) What are the strengths of the Real Business Cycle Theory? 5) What are the weaknesses of the Real Business Cycle Theory?
according to real bussiness cycle theory what is the source of
business cycle?what is the role of fluctuations in the rate of
technological change?how do real gdp and price level change if the
forecast of inflation is incorrect
How do consumption and investment spending affect aggregate
expenditures and output over the business cycle?
Which is more responsible for volatility - consumption or
investment spending or both? Explain your choice.
How do government actions affect consumption and
investment?
300 word response
In real business cycle theory, the persistence of shocks to
total factor productivity is justified byathe fact that capital takes time to build.bthe fact that capital depreciates every period.cthe behavior of Solow residuals in the data.dthe fact that monetary policy can be neutral.
Explain the main mechanism behind the Real Business Cycle theory
to explain the sequences of booms and busts of an economy. How does
it differ from Bloom’s theory of cycles generated by varying
uncertainty? Analyze the effects of changes in uncertainty related
to the COVID-19 crisis.