Intermediate Macroeconomics Question

Question 2 (a)

Discuss why there is a debate concerning how monetary and fiscal policy can best used to exit from the Global Economic Crisis of 2007-2009. (7 marks)

Question 2 (b)

Explain the difference between Rational Expectations and Perfect Foresight. (6 marks)

Question 2 (c)

The real business cycle approach builds models of a dynamic economy in which real shock are propagated. Discuss. (7 marks)

Syllabus from:

Main Reference:

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

Additional References:

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

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

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