Question
a. Explain the problem of zero lower bound and its effect on the Aggregate Demand curve. b. If the economy is facing a recessionary output
a. Explain the problem of zero lower bound and its effect on the Aggregate Demand curve.
b. If the economy is facing a recessionary output gap that is on the upward sloping segment of Aggregate demand curve, how can forward guidance help alleviate this recessionary output gap.
c. in the absence of non-conventional monetary policy what will be the effect on Real GDP and inflation?
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Econometric Analysis
Authors: William H. Greene
7th edition
131395386, 131395381, 978-0131395381
