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Use the Classical (RBC)IS-LM-FE Model to Show the Effects on the Economy

question 23

Essay

Use the classical (RBC)IS-LM-FE model to show the effects on the economy of a temporary adverse supply shock; for example,an increase in the price of oil.You should show the impact on the real wage,employment,output,the real interest rate,consumption,investment,and the price level.


Definitions:

Goal System

A structured approach to setting, monitoring, and achieving objectives within an organization, often linked to performance management.

Job Evaluation System

A method used by organizations to assess the value of each job in relation to others within the company to determine appropriate compensation levels.

Point Method

A technique used in job evaluation that involves quantifying job elements to determine the value of a position within an organization.

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