Need Help with this Question or something similar to this? We got you! Just fill out the order form (follow the link below), and your paper will be assigned to an expert to help you ASAP.
Internal Code: MAS1820
Report Writing Assignment:
Task:
Assume that the central bank can directly observe the aggregate demand shock and follows the following monetary policy rule:
(b) Assuming that in period 1 the economy is hit by the demand shock ?a=-3 lasting for one period, find the values of inflation, short?run output and the real interest rate in periods 1 and 2. Explain how the economy will adjust to its long?run equilibrium starting from period 3. Accompany your answer with a graph.
(c) Now assume that in addition to the demand shock from (b), in period 1 the economy is also hit by the supply shock o=-3 lasting for 1 period. Find the values of inflation, short? run output and the real interest rate in periods 1 and 2. Explain how the economy will adjust to its long?run equilibrium starting from period 3. Accompany you answer with a graph.
(d) Briefly explain how would your answer to (b) and (c) would change qualitatively if ? ?were higher.
Question 2:
Assume that the central bank follows the following simplified version of the Taylor rule:
(a) First, assume that the risk premium p= 0. Draw an IS?MP diagram but instead of the usual MP curve, graph the monetary policy rule. You might label this curve MPT for the simplified Taylor rule.
(b) Now consider the effect of an increase in risk premium from 0 to some positive value in the IS?MPT diagram. Compare and contrast the effect of this risk premium shock on the economy in the standard IS?MP diagram (without policy response to the shock) versus the IS?MPT diagram. Is there a difference?
(c) If the central bank follows the simplified Taylor rule, how would the AD curve look like? Explain. Now show the effect of the risk premium shock on the AS/AD diagram in the period when the shock hits. Is this consistent with what you had in the IS?MPT diagram?
Clients' Reviews about Our Services
Client ID 45637
U.S.A
Brilliant services. I ordered a 4 page essay and it was delivered in less than 24hours with every detail intact!
Client ID 45783
U.K
Aceassignment is the way to go. The writers are humble and patient with clients. I know this after using the website for about an year
Client ID 45214
U.K
My writer did a brilliant job. Not only did she delivered the paper on time and it was superb as my professor granted me an A without any criticism
Client ID 45009
CAD
I was running late with my assignment. I run into aceassignment on google, placed my order and within less than 18 hours my page essay was delivered. Thank you Aceassignment.
Client ID 45870
U.S.A
I've been using Aceassignment for about 2 years. My writer always delivers quality work. Mind you whenever I request for a revision it's always done ASAP and free of charge
Client ID 44218
U.S.A
At first, I was scared and hesitant about using this website. Didn't know if they would deliver, but they assured me they will. And for sure they did. I will definitely continue to use their service!
Client ID 45622
U.S.A
Easy to use website. You simply give your essay's instructions, make payment and before you known it the paper is delivered to you.
Client ID 43964
U.S.A
Unlike other platforms, this website is quite cheap and the quality is high. I have them manage my whole class and everything has been smooth this far.
Client ID 41996
U.K
Thanks for the excellent job. Swift and on the subject, just the way I like it. The Support team was quite nice to me, helped me with the order placing process.
Client ID 47654
AU
They are a marvel. I love their support team, they are so polite, it’s like speaking to a butler or something. Very pleasant people and good service of course.
Client ID 45670
FRA
Thank you for the help, I took my time and ordered a 14 days long essay. It came much earlier, around 7 days after I ordered it. Oh, and it was good, of course. I like the writer who did that, will definitely use again.
Client ID 22368
US
What I received was great. I forgot to mention in the instructions field that I needed reference page and by default, there was 0 in the number of references. I was surprised to see a full-fledged reference page in my paper with relevant citations. Bravo!
Client ID 46325
U.S.A
I was bombarding him with fine tuning and he handled it professionally. Thank you I will hire again the writer
Client ID 456820
U.S.A
Provided exceptional essay writing help in a short period of time. I plan to work with writer on many more projects!
Client ID 36890
UAE
Awesome paper in such a short amount of time. Was in a jam with another service who didn't deliver, but my writer did the job correctly. I will use her again to do my essays for sure!
Client ID 41427
U.K
Pretty good essay writer. I only made a couple of adjustments. She caught some instructions for the essay writing assignment that I didn't even notice, including them which was a pleasant surprise. Definitely recommend.
Client ID 45009
CAD
It was a very long paper, but the writer followed all the instructions, and she even finished the paper 5 days before the due date. Will write an essay with her again, thanks!
Client ID 36984
U.S.A
Writer was timely and proficient. I had to ask for a revision, but I got it back quickly with no other issues. Would use this essay writing service again.
Client ID 42960
CAD
Paper writing was prepared and submitted prior to the completed request date, and there were changes made quickly after I requested. This paper writer was accurate with numbers.
Client ID 31638
U.K
The first time I ordered here and it was a success. I received my order on time and according to my instructions. Thank you!
Client ID 46041
CAD
When I first discovered this website I was hesitant on whether they will deliver a plag free paper. The support team reassured me of their plagiarism policy. In deed they kept their word as the paper I got was authentic and plagiarism free.