ECON 3200- Final Exam Guide - Comprehensive Notes for the exam ( 66 pages long!)

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Econ 3200 lecture 1 notes predictions of the coordination failure model. In terms of how they match the data, the coordination failure and real business cycle models are essentially indistinguishable: however, the two models have very different policy implications. Econ 3200 lecture 2 notes policy implications of the coordination failure model and. It could be, however, that there are benefits from reduced uncertainty when business cycles are eliminated, so that even though average output might go down, the benefits from reduced uncertainty from smoothing business cycles could be beneficial. If aggregate production is subject to constant returns to scale or decreasing returns to scale, then this theory is a nonstarter. In practice, the measurement of returns to scale in aggregate production is very imprecise. Econ 3200 lecture 3 notes a new monetarist model: financial crises and deficient. Introduction: we introduced the monetary intertemporal model, in which money plays a role in the economy in facilitating transactions.