Title: Suppose the Fed has just learned that some foreign economies are headed for recession, which will re Post by: johnpaul92 on Jan 30, 2016 Suppose the Fed has just learned that some foreign economies are headed for recession, which will reduce U.S. exports. This is an economic shock that shifts the IS curve down. What would you do in response to the shock if you want to keep the economy at full-employment equilibrium under each of the following cases?
(a) You use the classical (RBC) model. (b) You use the Keynesian (efficiency wage) model. (c) You use the extended classical model with misperceptions. In each case, show the IS-LM-FE diagram associated with your answer. Title: Re: Suppose the Fed has just learned that some foreign economies are headed for recession, which wil Post by: supaman on Feb 2, 2016 Content hidden
Title: Re: Suppose the Fed has just learned that some foreign economies are headed for recession, which will re Post by: johnpaul92 on Feb 13, 2016 Wow, you answered what I thought was impossible to answer, thank you!
Title: Re: Suppose the Fed has just learned that some foreign economies are headed for recession, which will re Post by: supaman on Feb 14, 2016 Every little bit helps, right? Glad I solved your question
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