ECON311 Macroeconomic Policy代写

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ECON311 Macroeconomic Policy代写
ECON311

Macroeconomic Policy

Session 2, 2016

Assignment

The assignment is due at 10am on Monday October 17.

Note that the answers should be typed. Handwritten assignments won’t be

marked. Graphs should be drawn in some software (say, Word).

Assignments with scanned graphs will be accepted but with 20% deduction

of the total marks available.

Question 1 (25 marks)

Assume that the central bank can directly observe the aggregate demand shock and follows the

following monetary policy rule:

(*)