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pls help me with the following essay question:


(a) Describe the q-theory model of

investment with adjustment costs. Illustrate with the use of a phase diagram the dynamic properties of the model.

(b) Show with a phase diagram the effects of a permanent increase in output.


Please help me with the question. Imagine under exam condition, how many words are possibly written in 30mins.


 The relative reading is Advanced Macroeconomics by David Romer, McGraw Hills., if you cant find it on google, pls tell me.



Thx

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The q2.docx

The q­theory model of investment
The model's key presumption is that organizations confront expenses of modifying their capital
stocks. Accordingly, the model stays away from the absurd...

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