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8. Here are the equations of a classic model: 1 Y = (5 + Tech ) N - 0.0007/ 2 =(5 + Tech)-0.002 N? 3
8. Here are the equations of a classic model: 1 Y = (5 + Tech ) N - 0.0007/ 2 =(5 + Tech)-0.002 N? 3 N = 60 w 6 4 MO = KPY 5 LF' = 200-(20*r)+GBAL 6 LF = 0.1*Y +(20 * r - 50) Type your answers to the following questions directly where indicated a) What equations are needed to calculate the equilibrium value of GDP (ie Y")? Answer : b) What equations are needed to calculate the equilibrium value of the real interest rate (ie r' ) ? Answer : c) To enable you to calculate a numerical solution of the model, which are the parameters for which it would initially be necessary to choose indicative values? Answer : d) What will be the impact on equilibrium values ( )'. ' ) an increase in the government
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