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Section A:

problem 1: Under what conditions does an economy realize steady state? In the neo-classical growth model describe how Golden Rule is distinct from steady state.

problem 2: Describe the basis on which the Lucas criticizes econometric modeling. What is the role of micro- foundations in Lucas critique?

Section B:

problem 3: Classify different theories of unemployment based on the possible responses of the firm.

problem 4: What is an IS curve? Describe how equilibrium in the real market can be presented via IS curve.

problem 5: Critically compute the endogenous growth theory.

problem 6: Describe the mechanism via which internal and external balance occurs under flexible exchange rate.

problem 7: prepare short notes on the given:

a) Menu cost.
b) Non-accelerating Inflation Rate of Unemployment (NAIRU).

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M92047

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