Solution-Consistent with the business cycle theory

Consistent with the business cycle theory

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a) Unemployment is strongly countercyclical. Is this stylized fact of the business cycle fact consistent with the Business Cycle theory?

b) According to Kaldor stylized facts of growth, in the long run K/L and Y/L grow at a sustained rate andK/Y is stable. Show that these facts are consistent with the Solow model with human capital.

Reference no: EM131188771

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Consistent with the business cycle theory

Reference no: EM131188771

Reference no: EM131188771

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