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You have data for real output y, price level P, and the nominal wage Wat two distant dates (time t= 0 and time t =
You have data for real output y, price level P, and the nominal wage Wat two distant dates (time t= 0 and time t = 10) for three different economies: United Kim dam All these observations reect potential equilibrium levels: each of the three economies was in a rst potential equilibrium at time t = 0 and and is in a new potential equilibrium at time t = 10. You do not have any short-run data. (3.13) Between time t = 0 and time t = 10, one of the three economies experienced a shock on productivity and a monetary intervention (a change in money supply). Can you identify this economy? Motivate your answer and try to speculate on a plausible reason for the monetary intervention
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