Describe a simple ?xed-price short-run macroeconomic model

Reference no: EM13897631

(a) Describe a simple ?xed-price short-run macroeconomic model (with ?exible nominal wages) and compare it with a conventional market-clearing model. Compare their predictions for the effectiveness of monetary and ?scal policies.

(b) Describe a simple short-run macroeconomic model with ?exible prices but ?xed nominal wages and compare it with a conventional market-clearing model (with ?exible nominal wages). Compare their predictions for the effectiveness of monetary and ?scal policies.

(c) Describe a simple short-run macroeconomic model with a ?xed price and ?xed nominal wages and compare it with a conventional market-clearing model. Compare their predictions for the effectiveness of monetary and ?scal policies.

Reference no: EM13897631

Questions Cloud

What processes will take the economy to these levels : Suppose that business pessimism reduces investment such that aggregate demand becomes less than full employment income at all non-negative rates of interest.-What processes will take the economy to these levels?

What is the difference between ebit and noplat : What is the difference between EBIT and NOPLAT? Why is it important to understand and manage net working capital? What does CAPX mean, and why is it a firm's engine of growth?

Project management life cycle model : Project Management Life Cycle Model

Describe a simple ?xed-price short-run macroeconomic model : Describe a simple ?xed-price short-run macroeconomic model (with ?exible nominal wages) and compare it with a conventional market-clearing model. Compare their predictions for the effectiveness of monetary and ?scal policies.

Why are profits on exports of intermediate parts by iwpi-us : Why are the profits on exports of intermediate parts by IWPI-U.S. to IWPI-Spain included in the value of the project? What risks are present in the IWPI-Spain project? How do they affect the value of the project?

Capstone project implementing a strategic plan : Differentiate between value-adding service delivery strategies and value-adding support strategies

Discuss the relevant theory behind this statement : "In response to demand shocks, short-term quantity adjustments occur earlier than price adjustment at the level of both the ?rm and the economy." Discuss the relevant theory behind this statement. Also, discuss its empirical validity at the macroe..

What would be terminal values of dividends from iwpi-spain : What would be the terminal values of the dividends from IWPI-Spain if they were expected to grow in real terms at 1% rather than 0%? How would this growth arise?

User Account

All Pages