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1. Given the following situation, illustrate the current state and long run equilibrium corrected state using the IS-LM-BP framework and AS-AD framework. Be sure to
1. Given the following situation, illustrate the current state and long run equilibrium "corrected" state using the IS-LM-BP framework and AS-AD framework. Be sure to label all axes and be as specific as possible. Show the classical, fiscal, and monetary solutions. Real GDP = $700 billion Potential Output = $ 600 billion MPC = .9 Interest Rate = 6% EQ IR = 5%
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
