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Suppose the Bank Of America reduces money supply by 5 percent.
a. What happens to aggregate demand curve
b. What happens to level of output and price level in the short run and in the long run
c. According to Okun's law what happens to unemployment in the short run and in the long run
d. What happens to the real interest rate in the short run and in the long run
If two variable Xt and Yt are cointegrated, then the OLS estimator of the cointegrating coefficient is consistent. However, the OLS estimator has a nonnomal distribution, to have right inferences we have to use ……
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