Okeh8039 Okeh8039

24-05-2023
Business

contestada

b) Assume that there is a negative
demand shock (et < 0) for 3 periods (t, t+1 and t+2). At the end of the third period this demand shock ends. But at (t+3) there is a negative supply shock (vt < 0)
for one period. Analyze and discuss how
the economy returns to its orginal position by using the necessary equations and graphics. (50)

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