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(10 points) The likelihood of a future military conflict increases as the war in Ukraine intensifies. This can be modelled as G unchanged, G increases.

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(10 points) The likelihood of a future military conflict increases as the war in Ukraine intensifies. This can be modelled as G unchanged, G increases. Use the real intertem- poral model to show graphically what happens to output, employment, real wages and the real interest rate. Also, infer what happens to investment and consumption

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