題組內容

4. Consider the following structural macroeconomic model:
ㆍProduction function: Y =- F(N, K)； Fข ＞ O, Fx ＞ O.
ㆍLabor demand: 뜻 = Fr(N, K)； FNN ＜ O, FKk ＜ O.
ㆍConsumption: C =C(Y - T,)； 1 ＞ Cy ＞ O, C, ＜ O. 
ㆍInvestment: I = I(r y)； Iy ＞ O, I, ＜ O. 
ㆍGoods market equilibrium: Y = C + I + G. 
ㆍMoney market equilibrium: "6316b60e3c681.jpg=m(r,y)；mT ＜ 0,my ＞ 0. The terms Y(nominal GDP), y(real GDP), N(employment level), P(price level), C(consumption), r(interest rate), I(investment) are endogenous variables while K(capital stock), W(nominal wage), T(tax), G(government purchase), M(money supply) are exogenous variables.

(B) (7 points) Is there a stable equilibrium? If instability is possible, what is the sufficient condition for instability? (7%)