tutorial9questions - r 1 ˆ N 1 ˆ Y Figure 2 Question 2...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
EC2102 Macroeconomic Analysis I Tutorial 9, Week 13, April 11-15, 2011 Question 1 (This is a continuation of Question 2 of Tutorial 8) ( iii ) Explain the e/ects of an increase in money supply today on the economy, where the economy is currently as described in Figure 2. 1 N 1 Y 1 LM 1 IS 1 AD d N 1 1 ˆ P 1 1 1 ˆ ˆ P W w = 1 ˆ Y 1 AS 1 Y 1 P ( 29 1 1 ˆ r N S 1 w 1 r 1 ˆ
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: r 1 ˆ N 1 ˆ Y Figure 2 Question 2 : Suppose that total factor productivity today ( z 1 ) decreases in the sticky wage model. Determine the e/ects on today&s real output, real interest rate, consumption, investment, employment, the price level, and the real wage. 1...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern