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Explain the difference between Real Business Cycle and New Keynesian approaches to business cycles
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- Explain how the real business cycle model can explain why the price level is countercyclical at some times, and uncorrelated with output at other times.SUMMARIZE THREE KEYNESIAN THEORIES AND DISCUSS WHY THEY ARE VERY IMPORTANT TO EVALUATE AND UNDERSTAND ECONOMICAL CONDITIONS IN TERMS OF MACRO ECONOMY.Discuss the key problem associated with the Real Business Cycle model. How can this problem be addressed?
- Which of the following are business cycle theories that regard fluctuations in aggregate demand as the factor that is creating business cycles? I. Keynesian cycle theory II. real business cycle theory III. monetarist cycle theoryTo what degree are fluctuations in the business cyclepredictable?Business Cycles are fluctuations about trend in real GDP. Identify and explain one of the most exciting things about the study of business cycles.
- 1- ) The National Bureau of Economic Research maintains a Web page devoted to business cycle expansions and contractions at http://www.nber.org/cycles.htmlLinks to an external site. . Please take a look at this page to see if you can determine how the business cycle has been changing in recent decades. Has the overall length of cycles been changing? Have recessions been getting longer or shorter? 2- ) Please review the Summary of Commentary on Current Economic Conditions by Federal Reserve District (Beige Book), available through the Federal Reserve System at http://www.federalreserve.gov/monetarypolicy/beigebook/beigebook201409.htmLinks to an external site. Summarize the national economic conditions for the most recent period covered in the report. Overall, is the economy healthy? If not, what problems is it experiencing? 3- ) (Economic Fluctuations) Describe the various components of fluctuations in economy activity over time. Because economic activity fluctuates, how is…According to Keynesian business cycle theory, what should the government do in response to a recession?Suppose you are interested in isolating the cyclical component of a macroeconomic time series (such as GDP ). Give at least one reason why assuming a non linear trend would be preferable than assuming a linear trend.
