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Graphically illustrate a CAPITAL MARKET SHOCK DUE TO NET TAX CUT for the Classical-FEM Model (aka, Long-Run, Growth,...) Your neatly drawn diagrams must include initial

  • Graphically illustrate a CAPITAL MARKET SHOCK DUE TO NET TAX CUT for the Classical-FEM Model (aka, Long-Run, Growth,...)
  • Your neatly drawn diagrams must include initial and subsequent, wages, labor hours, output, interest rates, loanable funds, curves, equilibriums, marginal products, marginal propensities, related movements along a non-shifting curve, etc..., for the labor, product and capital markets.
  • Please focus on demonstrating your understanding of sources/reasons for curve shifts/rotations/pivots.
  • SHOW TWO FEEDBACK LOOPS

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