Which type of shock does the debate concern, Macroeconomics

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Which type of shock does the debate concern

Problem

The Keynesian-RBC-New Keynesian Evolution. Here you will briefly analyze aspects of the evolution in macroeconomic theory over the past 25 years.

i. Describe briefly what the Lucas critique is and how/why it led to the demise of (old) Keynesian models.

ii. Briefly define and describe the neutrality vs. nonneutrality debate surrounding monetary policy today. Which type of shock does this debate concern?

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Macroeconomics: Which type of shock does the debate concern

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Macroeconomics: Which type of shock does the debate concern

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