Intermediate Macroeconomics Question

Every mark requires 1 fact/point. Thank you.

Question 1

(a) Explain the length of inside lag and outside lag of each fiscal and monetary policy. (5 marks)

(b) Explain the length of inside lag and outside lag of each fiscal and monetary policy. (12 marks)

(c) Give the meaning of overshooting. Show and explain how exchange rate overshooting occur. (8 marks)

Main References:

Dornbush, R., Fisher, S. and Startz, R. (2018). Macroeconomics. 13th Edition, New York: McGraw Hill.

Additional References:

Blanchard, O. & Johnson, D.R. (2013). Macroeconomics. 6^th Edition, Essex: Pearson Education Limited.

Gordon, R. J. (2012). Macroeconomics. 12^th Edition, Boston: Pearson-Addison Wesley.

Mishkin, F.S. (2012). Macroeconomics: Policies and Practices. Global Edition, Essex: Pearson Education Limited.