Question
More general questions unrelated to a specific model. (a) The main empirical tool used to estimate macroeconomic models in the data is [5] called .
More general questions unrelated to a specific model. (a) The main empirical tool used to estimate macroeconomic models in the data is [5] called . How are structural ("named") shocks and impulse response functions identified with this tool?
(b) Are stocks which have a high risk premium procyclical or countercyclical in their [5] returns? Explain. How is this related to the "beta" measure from the CAPM finance model?
(c) In the presence of credit market imperfections, who benefits most from a debt- [5] financed tax break? How is this related to the concept of Ricardian equivalence?
And also Conclusion please:-
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