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Many papers look at the impact of credit frictions onto business cycles, and they almost unambiguously find that credit frictions work as an amplification mechanism of other shocks.
For example, given a stronger negative total factor productivity shock, the existence of borrowing frictions will lead to higher firm death, devaluation of capital and in general stronger impact on the real economy.
A lot of these models (in the tradition of Kiyotaki and Moore) have finite periods and just illustrate the amplification mechanisms. Has there been an attempt that actually tries to look at credit frictions themselves as the source of business cycles?
The LM curve has a ___________ slope because ____________. negative; higher income is associated with a lower interest rate. positive; higher income is associated with a higher interest rate
Compare these results to those predicted by the equilibrium business cycle model developed by Barro throughout the text.
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The compressor is a key component in manufacturing both refrigerators and air-conditioners.
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Social responsibility other than to make as much money for their stockholders as possible. Explain why you agree or disagree with such a statement.
In what conditions will an increase in the price of a product lead to a reduction in total spending for that production.
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