Unformatted text preview: b.)A tier
the same time c.) At R. as After a burst of growth. the growth rate of eamings y falls to I ~din its;ly for an economy.
As time goes on. the proportion of new firms a would t
and eventually stock
market prices wou ld peak
actlJal earning.s uu.
Fall. at the same time as
..: l Not change. after
d) Fall, af'tc;
e .) Not change. at the same rime as
a l b .) ~ 9. ln which phase of our stock market model would you expect outcomes best approximate the
pure ' rational expectations' result where there arc no aggregate forecast crrors 0
c) Phase Ill
cl ) Phase IV
a) b) ' l 0. ln whi ch phase of the cycle would you expect Ben Bcrnankc would be most tempted to /u11·er Inte rest rates''
a. ) b )
C. ) d) Pha se l
Phase l V 11. A situation of· financial crisis' in a large country like the U.S. can be thought of as a
in the proportion of new firms a, followed by a discontinuous _ _ _ __ _ in y.
c .) d) 12. increase, inc...
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- Winter '09
- new firms, stock market model, Phase Ill