<br>

Topic. Date...*.*...s*******

AssTGNMENT
ArMALYSLS
MEClo2- MAcRo ECOoMIcE

Question.1.
-

The Luca Supkly fnction

developedb Robent E, Lucas
field
Jr.plauyi
Sig nificot xole
ctastc conowc.
an Erpleatien 8hort- te deuiaHon
eteielleuel
ncorpoyig the Coneet
Ahec tatio Tii func tien Corne
Stone Unclesteu ho indiuiduale
be
and irm adtuat hvioY
shouse pice change
their eectation
The Lucos uucton
Mathematically
= y -
Ye +
b(Re ElPe])

hene

actual deue of
Otput at timne t

y* natwa eel Output wbich

Coxrahonda te employ met and
defede Stuctmal factoYk ike
fa
technela lcabowu
Teacher's Sign ..9.
<br>

Topic. Date.

E}etecl price lel besec

4we (4)
pana meten fae
hat Meayuey -4he Sensifivite
changes
pice
hi
eutate natuel
Shey discr(any hetee
Hhe Qud Shected price leuele.
Thix desccf becawse
ageut Camnot petectg clis ti qush
beteen nominal and Shok
MPLICATIONS

The Lucay tuneton ha Sevenal

imotent mblieution

RaTIoNALC Pe
cATIoNS PoLTY

ne key
implicaHon Luca medel
liey oefecivenek psn þoailos
hat Sytemale monetoy
paliyc Output
...
Teacher's Sign
<br>

Topic. Date.
(3

Cmhlogmet
hom tlonal epectatiout
txpectHond ,they
anieiþate ptdic teble non atan

incor þorated uto heir prce

hectetani, Con sequeutly Such policie
oteet nomine UeniableeQike
pnce Vanialble
Output emplayut.

ln, the shert un Outeut Can deuiate

natal leueuhen
Oneectrd Chay
(Re-eCPe) o).
Pice leuel ecee d exected.
leuel timi peceve
gelaue

becawre eþectetor

MoeTAR SHoCk&=

Oatput luctu ation

Shock
ete efectation

Teacher's Sign.
<br>

Topic... .Date.

to
4hat Monetony
Rolig Cannot Sustmatlealg genenate

ORoLe SIONAL
EXTACLoN
A Luce
4he
ndiuidul Csn not
Tudemetion. fim
disHnqish whethen pce
Ohanga Cye mominal actor
Ceg Chan ly
Tui temfo

CoPARISo CLASsICAL
AcseecATE
The
fneion ditni
ge
sunione
1mlicaton

Teacher's Sign eeeee.eeeeeeeee

<br>

IOpIC.....*******s****************************** Date..

ExeecTATIDN foRmATION

Supply ede,
and to be

flei le and heve

ufornakion
ak natualeu
Chang fice eud
luces Mede eco newlc
bayed avaab le
wtisnel eectetoi
Miipecefien about pne
hany lea

Iafemetiena Hat
chang Tnstantt
eìthe bomiel
feece
heo
pice Chang nominal
Tui
Shot-tenm deu'aton

Y
poLLC

clarsleel kAnntory
polieg hos lm þact Teacher's Sign
<br>

Topic..*********v***** .......Date

Coutput
Mechanism
Lucal etor
palig heue Shor -4enm tecta.
liipte
attut.

The cleical desdel

e
ot
at
no t iày
fleeibì lity but nstead emphasi he

inex mato

Theucas Suphly tuactiou

acuence
incoroscH tional Ehectatia
and TMee eet chelege)
tradiHonel
hot Syekmetie
Policie
t1ueeion
Luc
this mud'e
Teacher Sign
key Cutibuti on in
<br>

Topic. Date.

Owtio.2
AneueN
|S-LM hamewark Coxnens tone o

keyneian. MacocnowCA analy, Develaped

John HickA A\vin Hansen, f
euta the iwhence tiy

detemiig Equlibiy
Qndiuteiet
The
meukt,sle

Mcuve
mon mak et. Togthen, they ovid
iuto

tisca and ouetany palici

IueTCATI0n
e
Ihe heu
imhorteut Imliation tor ndei ta eing
y
OEQUTLIBRIUM TNTHE

ue utueehion
detwiue 4he Simutaueow
C
nd oney
eilbum Euilibmu Preuido
Teàcher's Sign.
<br>

Topic.. Date.********.

iuteet ate C)
e

e1scAL PoLICy
change
vennieut

uenneut
Sifti
utput an
hiahe uteeyt atu.
slofe LM
me steefhghea inteiet
atey foy
alenud
an pivat Tuveytt

ehaniisne
EecTIVENSS MoNfTARY

Menetny Pol Cheng

Cue

nteuet atey

Gutt
paliu de lenali
Teacher's Sign
<br>

Topic..v*******
..Date.......us*********e

iuteet 1fited
fueehuent Output

polig
() RAOEoea BeTeN PoLIC1C

S-L trame wwo k hig hhiyut

betusecu 4iical
Oatput
Thitne
ical poliey iureaye
Tutenest
Output

oli itigte
TuteAet etes.
BusINee AwALYls
helte analyze
+luctuaiong acivity
Celes pgvideu
Uncetoucing
cdesnd
qolig at fect
Ott Thteeyt

Teacher's Sign.
<br>

Topic.sseveestsee****** *..Date.....

osITLON

UreUe xelaiouhi
betwen iuteieete
uhene aggrtgeae
deand cqualk
-
tacto Afectig te poiition

Gouennnet

An greveinent chenaltu
Shifte
Tucic highes Output for
weeat
Tax es CT)
- A 4ares
Cue dis osable
to higherm
auc
Consumpioy oteut

-mprved). Cosu met Coutceuce boost

slit he
Scue

Teacher's Sign ...s.....**

<br>

Topi... .Date.

(9Tnueitndt

investaatnt oe mand

PosiHve burine cspectaHout

actr

nteet Sensitiity
Sen ve to
iuteieyt te
chang4 the
il be fletten S
mel
Chang Tuteeyt date Cas eR
igniticant

Mangina Prepenii
A highen
Steeþe chang incowe lead
Cignificaut chane
demand
<78te
ate
A
hig her tex ete
Teacher's Sign.
<br>

2-)
Topic..es********v** .Date.

fACTo eSAfEecTNG THe

LMCve
)etueen and output
ale mand
hutetohene
equai Meney Suly

-ctor
LM Cuve

An
e
Cuve
ates
Otput
PHce

An

Cye

if heney eand lecayel to

Chang eneucey

Teacher's Sign.
<br>

Topic......*.******s* .Date.

Sensitivity o
eney Demamdo

deman Seusi tHue

CLang iutees t recte, te
Changes

ute Maintein
eouilibnum
nome Seusivi Demand:

Mouey eond Sensitie

stee Clang
langen
te Moiu4ejy

The Msele Velb le

equilibium
tscal and
ueLM

Qike
CUe
vemnettleaedsheneling ayel nd

there deli

Teacher's Sign
<br>

Topic.....******** .Date.

Ouution,3.

achieuig Patn nal

Sxtena bolanee a fundamt
obeeHue
The Iutnnal balance
SiueHon. ohee the
cþerate eaflat etenuel
Stabi
blanee
posiHon
meani achieu
belante
Sustenable
ayat.
(nce leble ete
Sytt 4hese balauces
achive
yates Dngie
and luteentone.
LNTENAL BALANCE
mhlies
ewplownt table
CwitaRs the
deviat on fom wtennal balan
to eithey Unemloyat ulatonay

Teacher's Sign
<br>

Topic. Date..

Cacte
Ex TERAL BALANCEG
ac helui us

e
pyet avoicliq Excesslve
ficta Surplwses
Cueut hehaa dstabilize
-he

LExRLE
ExcHANGE

tlexihle erehange egi

llou Uoluy to be
dete mine e

denaud Sut
anket Tui
Meehnis thetes autometic
adutnta Rmhalance
futennal Eatennal euilihium
i thot
Cautenmintiwtervaio
ExTRNAL AALANCE

Deteit and Cwemct

cleeciatan
hen
Caunt
accoUwt
face
indicetes thot demnd o

-toreig. Cunen Teacher's Sign ...

<br>

Topic.. Date......**

leading he
clere cietioy
Deprctetton recsces
dometic
foien
Camtetihe
Mankte aklng
Costlien
leadi
Aadle balane
Cnd demand

Suplus Cure
venseg
Con
Cunet
Suxhlos lel apþretatton
Cwney toy
Makex ore faeniiue
cheaper
loestic
imt
Cuabig
mhort
ACHEE VIU TNTeRAL SALANCE

Cunemy Deeiatoni
adeheciet
S
Hmwletes
demnd
Tui highen

Teacher's Sign.
<br>

Topic. Date..

and

Cuneny
An abecited
CunenLyluee
Cunbei by
Rmhort Cleb Thiz
adtstut
stabie

EAchang
a
chieue balane cal
enta
Maintg ntena bclance tausionany
demand
Co wt
addrtugoneployut, lon vensely
ractionany fsce poliei (eg

Coutsolli
intlateu e
ometeny olicy
fnteeyt
Can
afuemee Cahi tal
-aolbente
tlowe aggrgate
emnd and incietly affet exchinge
etey to
achive desird
Cenluion
(de atleak le
echana
Mechanis
and deeeaioy
an
Teacher's Sign
<br>

Topic..cs********* .Date.

adoa awtomatiealy

aneteg
poieies
Sfakility Howenven fleaible echang
Prouiee but
lynai adtent,
chelegs
pali
\o ny Aenm Shabilitt

Teacher's Sign
<br>

Topic.. Date.
(8)

Oustiom.4

highligtug eletlonsih behween

tanelaywut. itially
w.
A. hilliez
to extenciue
been Sobiet
Scgutiny cnd edifieatians pantieuay
be havio
Philli
Siynifika emiic
Unemloymet Cnd
Lalaton ate
nginal
Ruuerse rlationci
Unemploymeut elereaed, inlation
vice
obsenv tion a
poliyakeny Could
Uuemplsyet

polleies Eehansia nany ital o

polty almed t ecluug Uuempla

Cime4anen ly lea
Teacher's Sign ..........
<br>

Topic. .Date. (

ConvenselyConteactibnang olicien
uembloywant
hilli tenm
isigut uto short-
Tuteaeuttoue

1He SHAPe fTHE PHTLL PS

he

clounwand, de maonstraHng
elatonc between
becauLge
behau log one Ruflueeed
exhecttio, usich

lealig

es
adet obseved
hillite
THE SHNE PHTLLIeS

the phillif Cve

become Netual te

Teacher's Sign
<br>

Topic. ....Date.

Non- Accelenat ng inflatto

ancfonaatie
ece
shen yeut quteihte
ghen iulato tey
and

lea ateeleratHg
iaflatHou Sustened

fnspecte
oneanis t C-Atique niclate
b iedman sdmund phel
angue thet 4hene
Aracle
he On9Taitat
towsad t nata rate

Cuve
pECON<TLTS4 SHORT- PUN AND
PHiLLIPS

The DifeneMLe between

Ceu be
e
eloneiled le of luflatio

iutlaton Ti iul t Teacher's Sign ....

<br>

Date..
Topic.

slhing hort -Run philli Cve

Whene poliymakee Can epleit
Aade nflueMe
and enporail
He cnd
acla Ao
&hectaken
eklg Highen iuflatte eshec tatoni

Shet -Ru
phillitt Upscdentually
whe
Stblilie Matwcel ate
trade disaease

The plailif Cunue

imhortant
highigt hade

tht tsade ofH

not
makei
dlynae Ceate
e
belac
eloyet
beten
fluctuey
Teacher's Sign.
<br>

Topic.
.Date.

Ouitioo, 5 4

An&uen
Real Business Cycle CRB) odela
Sigificaut dleualoumt in
MacYoecOnonc a
distHnciue
taþlanaton tor economic luctuatHone.
These uodel athi bute buinesk cycle
primanily hocs& such
chang Aechnolog3
pducHoity
ethen oemastde
SALTENT FeATuRES REAL RusINESS
MO0LS

Miceoecooicz ouNDATLoNG
e
built àgorou
pineila,emhh asizing
oimiaHon be heyuio ot ndi idua aud
Hxmi Householcd almie
Hue Concidenlug CsniumHon Qnd la bow
leisanetraale uhile irm nto
Mariize

RenL SHOLks

E
Conwnie flue tuoio atribute to
Teacher's Sign
<br>

Topic. .Date.....

Shecle Such oechnslegicad

RnnoHonchange
ouennmant polieie
pdchiwp. heie shacka lead
Chaug
Co

( ÂTLONÂL

Ageute
hoe Qxectatio penect
eteue Condittone bated
avalleble informatlon and adft hi
be havio ccolingly
(TTCeTeMPoeAL SuRsTITUTLo LARoR

A
key teateot sclele Hha

iwtenmpoo SubsH tution twshe

indiuidy alten le bo Qukl Qnd

Cashtan.
wagei productiutty

TECHNOLOGy

Teehnal»gy shact
ole. RosiHue ehnolegy shacke
Teacher's Sign
<br>

Topic. *e***e*****
.Date..

pecueHuity, leaallug bighen Gutput

while neyellue shsck
dosntunne

Coutinuou Market
cleaiugshene pee aalt iactanty te

ete
hetet.
clemand
Tuir elimlnate
nemloyeut
alemsmd a and la bax

MoDELS

RBCMedelepovle hamerk
anayzi how real SheckA

Sitt
poli cie to Sly-sie tecto
Slnce
nettoue
eieieuthey
Houket and eectata,
downplay etHectlsnen
tigati econo wie Autuatoy, Tustead
ovocates palieies hat ehauee
prodtuity and Rnnouom
Teacher's Sign
<br>

Topic... .Date.. 65)

Polteies Cled
Mouket tleibility lnceutiuizig egecb
cltwelopt snd enhaneig Chite
formain emhhaied
Sta bilie
eplaln focyclicel bekay

Otptemlsqeut aud inyeetneut

pduciuihy chagu.
iutence a
tocHve foductive
Shock
tse slmultaneously

molele Cautibte
gnenal euilibs
4e dewoat
dynauc analysi,
tool
temlnfactz polig shactmal
Chag

Real Business Cycle Modee

poide iucigbt luto econo mic fluctuatHosg
em phsizing shocke
eional behulor sile chaag
tadiHo nal and
Qnd
liutd
Moket m
þen fecttos equire tuhen
tinent obeen cddre eol
He,..
Colexi Teacher's Sign.
<br>

Topic Date

Qestion.6:

Angwen

Unenployneut pensis teut ecooeic

ben analyzed thevgh
theoeical amewete.tese
theoiey oten Ceuten the be havior
market Conditon Cag, Qnd abor
maaket policis, i

-
VARTOUr THEoRIE S
UNEMPOYMET

clasic theonel
Claicl
Oueloymnt anis fam lye
n
igidity
extnaal utenfeeuce Maket
Euilib dom irm
Cguate la bor
Sply
Concpt
andemand. Theseatewo

velutany Umemtley
mt Cuoykeni chesie
notto at ua:lg

to
Toacher's -
<br>

Topic.. ..Date.

Okegnesian theories of Unemploymeut

keyneaian tueoie -
Coucet ofdemand
eicieut Cyelicel Guealoywast
þandto
Tucufiiat eate e
sfendi clines tiEme
and producioa
ta decreas ed
demancd and
A key eaue is

due to Socia

eialt Camþaniei often chee

kee rathen than
oleceye ei
he implicaHon
palicg ienes ian.
and Stimwete
lemand Ultimately edue Unemplaput

Structunal Theorie
Stuctrul COnelnywent
misetchey between wOkfoce
skill aud
egahical dihoai Hey. ..
Tedcher's Sign
<br>

Topic. Date,

avotd individvale lacking necekony

hiit
skllleCausiug Significaut paxion
labo shggle
Sile ble
Te chnaletcal cluantewnta
key evolviwa
ues Centetn shil Gbgolete
b e Qike istn
iSSue feuten
Complic ate Qcce
Tuispoliey imhlicate ehatie
trodnin Sill deuelout
polieie tat prowete labo
sbil4 odre sthctel

Efi Cency cge heorie of

Camaniee ten
above moket ae to boozt productiity
cecye employe Aunoven

the Cqulibìug leueeganizaone

4o tos ten losyalty enhante
qnd attact ore qualited
lead to
busine
Teacher's Sign.
<br>

Topic. ..Date.
(9
.********

Mauy choose to hixe individsa

alevated wye te The key
beneitx f ncresied
ecuhio shix kins andabsenteeis
m'inimied
Exheniee uth Constat
Cud tanining
employcei, Conseqv eutly thece Hesies
highligt te ance
mporhaee of addeig
ageigditt o
eatbiity
labaWA snkt
Uneloyat
Seancb He
of
calayt
Seych and nate ce
Chaleuses fimm
Sui lable tolo Can ali datey leadig to
agent, utarnaiomal
CanleziHe Casie
hinulHg pensitaut
ecqneies

Uwnpleyt peniodi, Senc,

impen fect iafoxmlou yateme
Sech
ehanee ecitent iti
bene fiHy and
SeekeNA clynamic abo

Teacher's Sign
<br>

30)
Date.

Asset ficing asdel CcAPM)

The Calbital Asset Picing
Psicing sodelis
tuudameta
descibe te elationchi, between
Ehected
tx SytemeHe iz k. Aeuelohed
Shanb lohn Lintnen ad
Jan Mossio 4he
hany Roxtfli
uot fveterey
Menketi
z k
em phasizing tat ySysteake
CMorkt is k) afect
Sinee UnsysteHe
diuensified
Exþecttsl Re tun toxla

ecteal retu
Risk fee
Eehectel.
ortfalio wet

Teacher's Sign
<br>

31
Topic.. .Date.

the Molel iales. Ruytmont decisiox

helhing letey mine ohethen aet
Gudenvau and
etate nance .
Decpite ta
Coxhoate M
has liuttattovy iuelucliug
reliqnce deal Hanket
wistdcal ata
esiate betahich wot ccunately
pedict
CALH):
(6) Pemanet ncone Hypothei
The Permaneut iuco Hypotherle CPH),
Hypathe
Pooed lton tried mann
ndividua Make
Ca
nsufion le cision based
exhected
Shor tem fluctuaHou According t
PIH ndiiduale Smooth

Ceniunn Hoy
Saxig to ointein Sta ble
pten depite Naniabil
penmanent ncowL

tem tanito
shic temhoant
winl fele dehenda
Consumhioil
Teacher's Sign
<br>

Topic... *....ses*ee*..Date..*********s******* 6)

penmqneut ncowe tann sitsg

fucoe has a \iuited
twli 4ht tempny 4iical meawwes
Qike lezs eflecHue
pele
-tat Tdiuidval

iss aue incowe

ec ble
behvior and petect ore sia ut
lich
g
not hold due to Unce teint
behauiore biase Emþireal edence
igigt deviton hmPIH
oueh lde
liquidity Canieúntà

Teacher's Sign .e