Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

While the monetarists say that the source of the change in nominal GDP is the money supply, Keynesians suggest that this increase in nominal

 

While the monetarists say that the source of the change in nominal GDP is the money supply, Keynesians suggest that this increase in nominal GDP depends on the change in public expenditure. According to these two different views, the following finite distributed lag models are estimated. The estimation results are given at the table below. v=a+, +un i=0 Y,= Growth rate of nominal GDP (%) M, = Growth rate of Money supply (%) ,= Growth rate of public expenditure (%) Coefficient Bo P B B Y =r+ ^E +1 i=0 0,40 0,41 0,25 0,06 -0,05 4 . =1,07 i=0 Coefficient 20 24 2 23 24 0,08 0,06 0,00 -0,06 -0,07 4 = 0,01 i=0 Using the model predicted by Keynesian economists, calculate the short-run multiplier value and write it in the space below. (Use 2 digits after the comma)

Step by Step Solution

3.37 Rating (144 Votes )

There are 3 Steps involved in it

Step: 1

To calculate the shortrun multiplier value based on the K... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Exploring Economics

Authors: Robert L Sexton

5th Edition

978-1439040249, 1439040249

More Books

Students also viewed these Economics questions

Question

a sin(2x) x Let f(x)=2x+1 In(be)

Answered: 1 week ago

Question

Calculate the missing values for the promissory notes described

Answered: 1 week ago

Question

Calculate the missing values for the promissory notes described

Answered: 1 week ago

Question

Calculate the missing values for the promissory notes described

Answered: 1 week ago