Macroeconomics Answers

1. Strength and weakness of Solow growth model and it contribution to empirical economics growth model.2. main conclusion of the model

Reflecting on the above situation justify whether the Government of Pakistan should opt for expansionary or contractionary fiscal policy as a stabilization policy. Also illustrate it graphically.           

Reflecting on the above situation justify whether the Government of Pakistan should opt for expansionary or contractionary fiscal policy as a stabilization policy. Also illustrate it graphically.           

"Changes in disposable income lead to moments along a consumption function and changes in well and other factors shift the entire consumption faction" do you agree? Explain

Which of the strategy is currently being used by the Central Bank of Nigeria and how

If wages and prices are flexible people form their expectations rationally and anticipate policy incorrectly what happens

With the help of the Solow growth model diagram, explain the effects of shocks on steady state per worker capital and output.

Suppose wages and prices are flexible, people form their expectations rationally, and they anticipate policy incorrectly. What happens?

Suggest solutions to the three major weaknesses of the New Classical Theory.

With the help of the Solow growth model diagram, explain the

effects of shocks on steady state per worker capital and output.