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In the model: V,=v - B(r,-r")- we, + e 1, = n + a(v, - v,)- yAe, + e, What is the expected short-run effect of a positive exchange rate shock ( on output gap? negative ambiguous neutral positive OOOO

In the model: V,=v - B(r,-r")- we, + e 1, = n + a(v, - v,)- yAe, + e, What is the expected short-run effect of a positive exchange rate shock ( on output gap? negative ambiguous neutral positive OOOO

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Hi could someone please help with this Thank you in advance In the model: V =g•t + e V;=v; - B(r,-r")-we, + e T, = m; + alv, – v;) – yAe, + e," What is the expected short-run effect of a positive demand shock ( )on output? negative ambiguous positive neutral
Transcribed Image Text:Hi could someone please help with this Thank you in advance In the model: V =g•t + e V;=v; - B(r,-r")-we, + e T, = m; + alv, – v;) – yAe, + e," What is the expected short-run effect of a positive demand shock ( )on output? negative ambiguous positive neutral
In the model: v; =g•t + e r; = i, - n V; =v; - B(r,-r")-we, + e TI, = n; + a(v, – v, )- YAe, + e," What is the expected short-run effect of a positive exchange rate shock ( Ae, >0, on output gap? negative ambiguous neutral positive
Transcribed Image Text:In the model: v; =g•t + e r; = i, - n V; =v; - B(r,-r")-we, + e TI, = n; + a(v, – v, )- YAe, + e," What is the expected short-run effect of a positive exchange rate shock ( Ae, >0, on output gap? negative ambiguous neutral positive
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