MONETARY AND FISCAL POLICY IN THE VERY SHORT RUN
Solutions to the Problems in the Textbook:
1. Technically, although it is difficult to show this at this level, the optimal policy will depend on the
relative slopes of the
Chapter 5 - Solutions to the Problems in the Textbook
1. Current account has three major components: net exports; net income from assets; and net transfers.
We have already seen net exports in Chapter 2 as a component of the National
Chapter 2 Dornbusch Solutions to Problems in the Textbook:
1. The article that students are referred to is rather lengthy, and does not really come to any general
conclusions. The paper actually raises more questions than it answers.
Chapter 3 - Solutions to Problems in the Textbook
1. The Classical model is a market clearing model. Therefore, at the equilibrium N * , all individuals
who choose to work are working. Underneath the model is the assumption that labou