Intermediate Macroeconomics Review for fina
Intermediate Macroeconomics Review for Final
中b2 Policy debate Positive or passive? Positive: fight shocks by fiscal/monetary policy Passive 1) Lags in implementation effects of policies 2) Economic forecasting is difficult: gnorance, expectations, the Lucas Critique'' Conclusion? Historic data?t
Policy Debate 1. Positive or passive? Positive: fight shocks by fiscal/monetary policy Passive: 1) Lags in implementation & effects of policies 2) Economic forecasting is difficult: 3) Ignorance, expectations, & the “Lucas Critique” Conclusion? Historic data?
丰 or esTers Policy debate 2. Be conducted by rule or by discretion? 1) Why not by discretion? a) Distrust of policy makers the political process b) Time inconsistency of discretionary policy 2) Possible rules for monetary fiscal policies
Policy Debate 2. Be conducted by rule or by discretion? 1) Why not by discretion? a) Distrust of policy makers & the political process b) Time inconsistency of discretionary policy 2) Possible rules for monetary & fiscal policies
中b2 Government debt 1. Is budget deficit correctly measured? 1)Inflation 2)CapitalS sets 3)Uncounted liabilities 4)Business cycle
Government Debt 1. Is budget deficit correctly measured? 1) Inflation 2) Capital Assets 3) Uncounted liabilities 4) Business cycle
丰 or esTers Government debt 2. Traditional view of govern. Debt- LR. classical model SR.IS-LM model
Government Debt 2. Traditional view of govern. Debt LR……classical model SR……IS-LM model