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a) What are meant with permanent and transitory fluctuations according to random walk of GDP theory? b) One of the issues debated in real business


a) What are meant with permanent and transitory fluctuations according to random walk of GDP theory?

b) One of the issues debated in real business cycle theory is the disturbance that hit the economy. Explain what is meant with this disturbance.?

c) Compare between proposition by perfect foresight model and Lucas model regarding how Monetary Policy can effect output in the short and long run. ?

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