Turn on thread page Beta
    • Thread Starter
    Offline

    0
    ReputationRep:
    Consider the following version of a Classical Model.
    n^d(w, r) = n^s(w) (1)
    n = n^d(w) (2)
    y = f(k, n) (3)
    y = c(r, y - t) + I(r; y - t) + g (4)
    M/P = L(i, y) (5)

    What are the effects on this model economy of an unanticipated increase in the nominal money supply?

    Step 1- take the derivatives of all the equation with respect to each variable
    Step 2- used the derivative of equation 1-3 to find dr and dy
    Offline

    15
    ReputationRep:
    Why are you posting this at 3.30am???
 
 
 
Reply
Submit reply
Turn on thread page Beta
Updated: September 29, 2011

University open days

  • Heriot-Watt University
    School of Textiles and Design Undergraduate
    Fri, 16 Nov '18
  • University of Roehampton
    All departments Undergraduate
    Sat, 17 Nov '18
  • Edge Hill University
    Faculty of Health and Social Care Undergraduate
    Sat, 17 Nov '18
Poll
Black Friday: Yay or Nay?

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.