Question

2) Under Solow's Growth Model, what are some
policy recommendations to reach a higher steady
state or level of income per worker? What happens if
we have an increase in the U.S. savings rate? What
happens if we have an increase in the population
growth rate?
3). In the classical model, what happens to GDP,
Prices, Unemployment and economic growth if the
Federal Reserve increases the money supply? Make
sure to include the money graph and the good
(AD/AS) graph.
4). Given the current state of the economy, are you
more concerned with Unemployment or Inflation?
Why? Explain and graph the trade-off between
Unemployment and inflation using the Phillips
Curve​

Answer 1

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