How the new keynesian and real business cycle model respond


Problem

1. How does monetary policy stabilization differ from fiscal policy stabilization?

2. Explain the differences in how the New Keynesian model and the real business cycle model respond to changes in total factor productivity.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: How the new keynesian and real business cycle model respond
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