macro questions

Problems with contemporary macroeconomics. The early evolution of macroeconomics led to the birth of IS LM-PC type of models which was later improved on by the Mundell-Fleming model to incorporate the effects of trade and capital flows (open economy) on the exchange rate. These models ultimately became the workhorse model of macroeconomics. Since then, that model has been used, mixed, modified, and advanced by contemporary macroeconomists, the development of which culminated in what is known as the 'dynamic stochastic general equilibrium' (DSGE) model. Hence, in retrospect, while all contemporary models are Cn different from, and not about, the workhorse model, they all use it, as it provides the foundation to work with many of the most fundamental issues in the macroeconomy. a) Evolution of macroeconomics. Provide a short narrative on the evolution ofmodern macroeconomics until today, and identify the weaknesses of contemporary models, including the DSGE model.-10%