Question
Give typed solution full explanation Don't upload any type of photos Are the following statements True, False, or Uncertain? Explain your choice and follow the
Give typed solution full explanation
Don't upload any type of photos
Are the following statements True, False, or Uncertain? Explain your choice and follow the instructions:
a. Hyperinflation has led to 60% of labour contracts having wage indexation. Cet. par., this will cause the PC (in change in inflation-u space) to become flatter. Appropriate graph and equation required.
b. If there are anchored inflation expectations and a negative Y gap then during the MR the monetary authority does nothing, but ultimately it will need to reduce the nominal interest rate. Explanation that includes appropriate equation for monetary authority's actions.
c. If the rate of Technological Progress (TP) slows, cet. par., then immigration that leads to a higher rate of growth of N can be used to offset the effect of this TP slowdown on the SS level of Y/NA. Appropriate Solow Growth model graph required.
d. In the Solow Growth Model with TP, a one-time increase in s will increase the rate of growth of Y/N permanently, whereas in the Basic Solow Growth Model, a one-time increase in s will lead only to a temporarily higher rate of growth in Y/N. Log-scale figures required.
e. If the rate of depreciation rises, cet. par., then the (K*/N)GR will decrease. Mankiw Golden Rule (GR) graph required in which you show the GR outcome before and after the "shock." Be sure to include the mathematical condition of the GR and explain what the GR is.
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