Draw the impulse response functions for output, inflation and the real interest rate after a permanent positive
Question:
Draw the impulse response functions for output, inflation and the real interest rate after a permanent positive aggregate demand shock and a permanent positive supply shock. [Hint: the 3-equation model diagrams for these two cases are shown in Figs. 3.11 and 3.14 respectively.]
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Related Book For
Macroeconomics Institutions Instability And The Financial System
ISBN: 9780199655793
1st Edition
Authors: Wendy Carlin, David Soskice
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