Question
1.Using the IS-LM model determine the affect does the following have on the shape of the aggregate demand curve: i) A high interest elasticity of
1.Using the IS-LM model determine the affect does the following have on the shape of the aggregate demand curve:
i) A high interest elasticity of investment
(3 marks)
ii) A low interest elasticity of money demands
(3 marks)
2.Analyse insights into the macroeconomic consequences of financial frictions arise from the new Keynesian model. (7 marks)
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Climate Policy And Nonrenewable Resources The Green Paradox And Beyond
Authors: Karen Vollebergh, Rick Van Der Ploeg
1st Edition
0262319845, 9780262319843
