Set out the IS - RX and (P C-M R) diagrams for bloc (A) and bloc (B)
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Set out the IS - RX and \(P C-M R\) diagrams for bloc \(A\) and bloc \(B\) (as per Fig. 11.16) and the associated impulse response functions (as per Fig. 11.17) for the case where there is a positive demand shock in bloc \(A\) and a negative demand shock in bloc \(B\) (assume the shocks are equal and opposite and take place simultaneously).
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Related Book For
Macroeconomics Institutions Instability And The Financial System
ISBN: 9780199655793
1st Edition
Authors: Wendy Carlin, David Soskice
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