Suppose there is a liquidity trap. In the real business cycle model, what does this imply about

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Suppose there is a liquidity trap. In the real business cycle model, what does this imply about the comovements we should observe between money, the price level, and output? Discuss, with the aid of a diagram.

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Macroeconomics

ISBN: 978-0134472119

6th Edition

Authors: Stephen D. Williamson

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Question Posted: Dec 05, 2018 04:57 AM

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Suppose there is a liquidity trap. In the real business cycle model, what does this imply about

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If there is a liquidity trap this makes no difference to how much of the real business cycle model w...View the full answer

Macroeconomics

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