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this is for my intermediate Macroeconomics course. I am struggling so terribly. This is definitely a math class answers should not be worded. I havent
this is for my intermediate Macroeconomics course. I am struggling so terribly. This is definitely a math class answers should not be worded.
3. (35pts) For the following questions assume that b=0.5 and v=1 and that inflation is normally at 28 and that the natural rate of unemployment is 4%. Also assume that initialy the reat intertst. rate equals the marginal product of capital, which is 38 . Now, the Fed decided to change its implicit target inflation rate from 2 (as above) to 35 . a. (Spts) What is the lowest level the Fed can lower the real interest rate to? b. (5pts) Show with an equation and a graph what happens to output at time t. c. (5pts) What is inflation and unemployment at time t? d. (5pts) What will the Fed do at time t+1? What will the real and nominal rate be? e. (5pts) Show the effect of question 2d on the economy. Use a graph and an equation to show what output will be. t. (5pts) What wilt inflation and unemployment be at time t+1 I havent found anyone on chegg that can help me so im super desperate.
we use formulas like y=a-b(Rt-r)
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