In the dynamic model, the supply shock variable, υ_t, is a variable appearing in which of the following equations of the model? A)Fisher equation B)Phillips curve C)monetary-policy rule D)adaptive expectations

Question

Quizplus · Accepted Answer

The supply shock variable, υ_t, typically appears in the Phillips curve equation, which relates inflation to expected inflation, output gap, and supply shocks.

In the Dynamic Model, the Supply Shock Variable, υt, Is

In the Dynamic Model, the Supply Shock Variable, υ_t, Is