Economics Homework Help

Macroeconomics Analytical Method & Comprise of The Trends Discussion

 

I need this answered:

  • The usual analytical method in macroeconomics is to begin in long-run equilibrium, shock the economy, hold all else equal, and then evaluate how the economy responds to that single shock until it returns to equilibrium. (You can answer this question without providing an accompanying graphical analysis.
  • Question: Is there something fundamentally missing from the analysis?