Question

Suppose that temporary increases in government spending lead to permanent increases in total factor productivity, perhaps because some government spending improves infrastructure and makes private firms more productive. Show that temporary shocks to government spending of this type could lead to business cycles that are consistent with the key business cycle facts, and explain your results.



$1.99
Sales0
Views172
Comments0
  • CreatedDecember 05, 2014
  • Files Included
Post your question
5000