While the monetarists say that the source of the change in nominal GDP is the money...
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While the monetarists say that the source of the change in nominal GDP is the money supply, Keynesians suggest that this increase in nominal GDP depends on the change in public expenditure. According to these two different views, the following finite distributed lag models are estimated. The estimation results are given at the table below. v=a+ΣβΜ, +un i=0 Y,= Growth rate of nominal GDP (%) M, = Growth rate of Money supply (%) Ė,= Growth rate of public expenditure (%) Coefficient Bo P₁ B₂ ß₂ B₁ Y =r+ Σ^E +1 i=0 0,40 0,41 0,25 0,06 -0,05 4 Σβ. =1,07 i=0 Coefficient 20 24 2₂ 23 24 0,08 0,06 0,00 -0,06 -0,07 4 Σλ = 0,01 i=0 Using the model predicted by Keynesian economists, calculate the short-run multiplier value and write it in the space below. (Use 2 digits after the comma) While the monetarists say that the source of the change in nominal GDP is the money supply, Keynesians suggest that this increase in nominal GDP depends on the change in public expenditure. According to these two different views, the following finite distributed lag models are estimated. The estimation results are given at the table below. v=a+ΣβΜ, +un i=0 Y,= Growth rate of nominal GDP (%) M, = Growth rate of Money supply (%) Ė,= Growth rate of public expenditure (%) Coefficient Bo P₁ B₂ ß₂ B₁ Y =r+ Σ^E +1 i=0 0,40 0,41 0,25 0,06 -0,05 4 Σβ. =1,07 i=0 Coefficient 20 24 2₂ 23 24 0,08 0,06 0,00 -0,06 -0,07 4 Σλ = 0,01 i=0 Using the model predicted by Keynesian economists, calculate the short-run multiplier value and write it in the space below. (Use 2 digits after the comma)
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