In AA-DD model, we discuss the difference between long run and short run. Discuss why is it necessary to make such differentiation? Why on the long run, fiscal and monetary policies are not effective? How does the expected change in prices affect price changes today?
In AA-DD model, we discuss the difference between long run and short run. Discuss why is it necessary to make such differentiation? Why on the long run, fiscal and monetary policies are not effective? How does the expected change in prices affect price changes today?
Chapter10: Bringing In The Supply Side: Unemployment And Inflation?
Section: Chapter Questions
Problem 1DQ
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Short run vs. Long Run
-
- In AA-DD model, we discuss the difference between long run and short run. Discuss why is it necessary to make such differentiation?
- Why on the long run, fiscal and
monetary policies are not effective? - How does the expected change in prices affect price changes today?
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