Question
pls help me with the following essay question:
(a) Describe the q-theory model of
investment with adjustment costs. Illustrate with the use of a phase diagram the dynamic properties of the model.
(b) Show with a phase diagram the effects of a permanent increase in output.
Please help me with the question. Imagine under The qtheory model of investment
The model’s key presumption is that organizations confront expenses of modifying their capital
stocks. Accordingly, the model stays away from the absurd…
Economics