Let's assume that in the Asgardian's model of the economy the natural rate of interest is denoted as ß and it varies over time, so now it has to be written as Pt. a) How would this change affect the equations for dynamic aggregate demand and dynamic aggregate supply?

Let's assume that in the Asgardian's model of the economy the natural rate of interest is denoted as ß and it varies over time, so now it has to be written as Pt. a) How would this change affect the equations for dynamic aggregate demand and dynamic aggregate supply?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Aggregate Demand And Aggregate Supply

Section15.2: Explaining Short-run Economic Fluctuations

Problem 2QQ

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Can you explain me the answer to section a) please?

Let's assume that in the Asgardian's model of the economy the natural rate of
interest is denoted as ẞ and it varies over time, so now it has to be written as ft.
a) How would this change affect the equations for dynamic aggregate demand
and dynamic aggregate supply?

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