Question 2 (10 Marks)
Explain why macroeconomists use the concept of ‘shocks’ for their analysis. In the context of monetary policy, what does a ‘monetary policy shock’ actually mean?
Question 2 (10 Marks)
Explain why macroeconomists use the concept of ‘shocks’ for their analysis. In the context of monetary policy, what does a ‘monetary policy shock’ actually mean?