Introduction to Macroeconomics Prof Mike Kennedy The Classical Approach The invisible hand of economics: General welfare will be maximized if: there are free markets ...
The CLASSICAL model of macroeconomics is the polar opposite of the extreme ... AS1. A beneficial supply shock raises. potential output by shifting AS0 to ...
Positive function of income. Negative function of nominal interest rate ... Higher cost of illiquidity (not having enough cash to cover emergencies ...
... Monacelli (2000) 'EMU Fiscal Rules: ... Beetsma R. (2001) 'Does EMU Need a Stability Pact? ... 2002a) 'Public finances in the EMU- 2002,' European Economy 3. ...