Similarly, the foreign country has a reaction function (RR*) which relates its optimal (non-coordinated) level of government

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Similarly, the foreign country has a reaction function (RR*) which relates its optimal

(non-coordinated) level of government spending to its full employment target and the spending level of the domestic country:

= (g* + *g — + 9g* = 0 g* = RR*. (11.59) ag* 1 + 0

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Foundations Of Modern Macroeconomics

ISBN: 9781264857937

1st Edition

Authors: Ben J. Heijdra, Frederick Van Der Ploeg

Question Posted: Nov 13, 2024 01:00 AM

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Similarly, the foreign country has a reaction function (RR*) which relates its optimal (non-coordinated) level of government

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Foundations Of Modern Macroeconomics

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