Consider the complete two-period general equilibrium model


Consider the complete two-period general equilibrium model with a temporary positive shock on productivity in the first period (i.e. productivity z only increases in the first period.). What are its effects on current aggregate output, consumption, investment, employment, the real wage, and the real interest rate? Redo the analysis for the case of permanent shock.

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Business Economics: Consider the complete two-period general equilibrium model
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