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Intertemporal substitution effect - PowerPoint PPT Presentation

Real Business Cycles

Real Business Cycles. Motivation The Model Solving the Model Predictions Fiscal Policy. Readings. "Understanding Real Business Cycles" by C. Plosser, Journal of Economic Perspectives 3, No. 3: 51-77 (Summer 1989)

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777 views • 52 slides

Production grows and prices rise, but the pace is uneven. What forces bring persistent and rapid expansion of real GDP?

Production grows and prices rise, but the pace is uneven. What forces bring persistent and rapid expansion of real GDP? What forces bring inflation? Why do we have business cycles? What is the range of view of macroeconomists in different schools of thought?. Aggregate Supply.

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735 views • 44 slides

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Intertemporal substitution effect - PowerPoint PPT Presentation

Real Business Cycles

Production grows and prices rise, but the pace is uneven. What forces bring persistent and rapid expansion of real GDP?