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Medical Questions
Your Question
1. 1. Explain the impact of unemployment benefits on the unemployment rate. (3 – 4 sentences)
2. 2. Explain why higher inflation helps borrowers and hurts lenders. (4 – 5 sentences)
3. 3. Discuss the similarities and differences between wage and price flexibility in the real business cycle and New Keynesian models.
4. 4. In your own words, what is intertemporal substitution? How does intertemporal substitution affect the impact of a negative real shock on an economy? (5 – 6 sentences)
5. 5. Why did the Federal Reserve begin to pay interest on reserves held by banks? (3 – 4 sentences)
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