According to the real business cycle model, are there anything that the centralbank can do to help the economy recover from the recession? Why? You do not need to drawfigures in this question.
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According to the real business cycle model, are there anything that the central
bank can do to help the economy recover from the recession? Why? You do not need to draw
figures in this question.
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- What role, if any, does monetary policy play in the Real Business Cycle Model?Many central banks now indicate that their primary objective is to keep inflation at a persistently low rate. If the rate of inflation is persistently low, will this help reduce the instability of the business cycle? Why or why not?Q)compare the real business cycle model to the coordination failure model.
- During the recession of 2008, Did the US Government take a page of the Keynesian Macro theory to help move the country out of recession? What did they create? Did it work?Distinguish between money/nominal and real GDP. Which would be used to evaluate performance of a macroeconomic system and why?If a nation’s central bank, such as the US Federal reserve, believes the economy is headed toward a recession, what actions should it take?
- Graphically prove the following necessary condition given to us by economist Gottfried Haberler: An increasing supply of money and credit is a necessary condition for the occurrence of a long-run boom in the business cycleIn detail, explain how high inflation can lead to a recession in several ways.What impact would an increase in the nation's money supply or the federal government's budget deficit have on the real GDP and price level in the macroeconomy? What phase of the business cycle might this create?
- ) Real business cycle (RBC) theorists agree that agents optimize and that markets clear, meaning that business cycles are an equilibrium condition. What are some of the criticisms of real business cycle theory?What happens when an economy was initially in full employment, following a strongly expansionary monetary or budgetary policy?Craig and Kris were walking directly toward each other in a congested store aisle. Craig moved to his left to avoid Kris, and at the same time Kris moved to his right to avoid Craig. They bumped into each other. What concept does this example illustrate? How does this idea relate to macroeconomic instability?
