MACROECONOMIC PROBLEMS

profilehuirjgl

19. Define Ricardian Equivalence.  Explain the mechanism and policy significance behind Ricardian equivalence.   Give two reasons that in a more elaborate model, Ricardian equivalence might fail to hold.  What is the policy significance behind that result?  How does the distinction between permanent income and temporary income shocks also affect policies aimed simulating consumption?

  • 11 years ago
  • 20
Answer(1)

Purchase the answer to view it

blurred-text
NOT RATED
  • attachment
    macroeconomic_problems.docx