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April 19, 2024, 10:50:50 am
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Author Topic: Macro Questions.  (Read 3893 times)  Share 

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A_hma_d

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Macro Questions.
« on: September 27, 2011, 04:31:15 pm »
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i am having trouble answering these questions. can anyone please explain?! :-\

1). Suppose there is a sustained, exogenous increase in aggregate demand. Using the aggregate-demand/aggregate supply model, explain why the RBA might be concerned about a slowdown in productivity growth.

2). Using the aggregate-demand/aggregate supply model, present a rationale for why the RBA has kept the cash rate steady, even though underlying inflation is expected to remain relatively high in 2012 and 2013.


Thanks!  ;)
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