What would be the consequences of the shock on the growth rate of the capital stock, output, investment, and consumption within the post

Kaleckian growth model? Plot out diagrams showing the reactions of the capital stock, output, investment, and consumption to the shock. Describe how the shock plays out in the diagram in a few sentences. Discuss the responses of the variables immediate after the shock and their behaviour in the long run. 

Will the equilibrium growth rate be lower, higher or the same after the shock? 

Answer rating: 100% (QA)

The effects of a shock on the growth rate of the capital stock output investment and consumption wit... View the full answer