Dynamic General Equilibrium in the Macroeconomic Model

This printable revision sheet allows you to test your understanding of exogenous shocks in TFP and government spending by seeing how all the markets interact together.

Sticky vs Flexible Wages and Prices

Why not compare the macroeconomic dynamic general equilibrium with the Keynesian Sticky Price Equilibrium when:

  1. The Central Bank fixes the Interest Rate
  2. Monetary Policy fixes the Money Supply

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