Discussion Questions (2)
Please express the model of natural rate of unemployment according to Blanchard’s book and then give your comments.
How can you explain the aggregate demand and aggregate supply curves. How they are different from the usual definition on demand and supply curves.
Is the unemployment rate is at the natural rate if the output and price are the solution of our all market model (or at the intersection of aggregate demand and aggregate supply curves)?
If possible, please express the dynamic change starting with a price that is not at equilibrium in our all market model.
