question archive This week we combine our modelling work to put together a real inter-temporal model that explains investment
Subject:EconomicsPrice: Bought3
This week we combine our modelling work to put together a real inter-temporal model that explains investment. This model helps us understand the behaviour of real aggregate output, real consumption, real investment, employment, the real wage and the real interest rate and how these variables are determined.
Do you think macro economists care more about the performance of real macroeconomic variables or nominal ones? Can you explain the specific usefulness of one metric against the other?