# Tag Info

Accepted

### Is the basic RBC model a weak model?

When is a model really weak? A model is an abstraction of reality, to explain a part of it. A model is weak when it cannot explain what it's supposed to be explaining. Just adding features to a model ...
• 10.4k
Accepted

It's from King and Rebelo (2000) "Resuscitating Real Business Cycles". Here is a link to the NBER working paper version. The graph is in Figure 8 on p.94.
• 14.4k
Accepted

### Basic New Keynesian Model - Price and Wage Level after shock

Try to give a look at what happens to inflation's IRF. If it stays positive for the whole horizon of the IRF then simply prices have increased over time at the inflation rate. I guess that any non-...
• 106