Economics Homework
You have to write an "exam" question in which you would provide the setting or scenario and then using the Business Cycle Model, the "students" would have to analyze and predict the outcome of the situation.
Your "exam" question most come with an "answer key" with graphs that illustrate the economy's dynamics.
Here is a sketch of the exercise.
i. The economy starts at the steady state
ii. Then event ‘X' happens (event ‘X' can be anything that shifts C, I, G, or net exports)
iii. Illustrate how the economy moves to a new short-term position.
iv. Illustrate how the economy transitions to its new equilibrium in the middle-run
v. Illustrate the economy's end position in the long-run
vi. For each of these phases you have to tell what happens to: C, I, G, net exports, inflation, interest rates, and to the exchange rate.
Format your homework according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.