Question
1.Suppose that an economy has the Philips curve 1 0.5( ) n u u = and that the natural rate of unemployment is given by
1.Suppose that an economy has the Philips curve 1 0.5( ) n u u = and that the natural rate of unemployment is given by an average of the past two years' unemployment: 1 2 0.5( ) n u u u = a. Why might the natural rate of unemployment depend on recent unemployment (as is assumed in the preceding equation)? b. Suppose that the Fed follows a policy to reduce permanently the inflation rate by 1 percentage point. What effect would that policy have on unemployment rate over time? c. What is the sacrifice ratio in this economy? Explain. d. What do these equations imply about the short-run and long-run tradeoffs between inflations and unemployment?
2.In recovering macroeconomic models, why does Blanchard need DSGE innovation
3. Many microeconomics models are statistically rejected, explain
4How does central and state governments measure the tax base
5. What are the determinants of consumption in the investment demand theory.
6 Why does computation of national income use the net national product
7.Can I regress company data as dependent and macroeconomic data as independent
8.How does FDI fall use game theory
9.Is the red market paradigm shift knowledge gap behind the flip from red socialism to pure capitalism
10.Remedies of inflation
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started