Mastering Narrative: A Comprehensive Guide for Optimal Responses

Abstract

ASSIGNMENT 02 – Narrative Guide There are 4 answers required and only 4 answers accepted. You must do: Either Question 1 or 4 or 2; And either question 5 or 3 or 6; And Question 9 or 7; And Question 8 The group size does not impact the number of questions responded to. This is pretty much a general nature question which relies on the idea of adverse selection in a lending process. This question is about the actual inflation rate, the real rate (defined in ex post), and the 1 year rate on government bonds. Yes this is a Fisher Equation question at hear. After identifying such rates you are asked about some impacts and policy. Question d relates to policy. Question e is something that is very practical. Question 3 is somewhat about the Fisher equation, but more directly associated with the aggregate supply and demand model. This question is about risk premiums on bond yields. There are some easy calculations to do and some implications of that idea. Question 5 is about the aggregate supply and demand model. Recent publications about how Economists handled the forecasting and analysis during the Covid Pandemic raised questions. There were many statements that “Economics is dead.” Well it isn’t. However, one problem for the current state of the world is the idea of “potential GDP”. This plays a big role in the aggregate supply and demand model. Here I am asking you if the numbers for potential GDP are reasonable as published. Some would say yes and some would say no. The issue is how we define potential GDP. Perhaps the economic development while Covid was here casts a shadow on things? Question 6 is again about the Fisher Equation. It is a good concept that can’t be ignored. Question 7...