questionaexplain the real business cycle
QUESTION
(a) Explain the real business cycle theory.
(b) Using appropriate diagrams differentiate between inflationary and deflationary gaps.
(c) Differentiate between the Life-cycle theory and the Permanent income theory of consumption and saving.
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questionaexplain the real business cycle theorybusing appropriate diagrams differentiate between inflationary and deflationary gapscdifferentiate
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questionwrite detailed notes on the followinga activist and non activist monetary policy debateb optimality of policy rule compared to discretionary
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