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a) Using classical theory, discuss the effect of the following disturbance in the Kenya's economy. i) There is dip in technology in the economy (4mks)

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a) Using classical theory, discuss the effect of the following disturbance in the Kenya's economy. i) There is dip in technology in the economy (4mks) b) Discuss the adjustment mechanism on real and good market in the economy from disequilibrium (6mks) c) Given the following equations: y=cti+g+x c=200+0.8y (consumption function), = 150-400r (investment function), m = 0.8y -1500r (real demand function), x =100-0.12y-400r (net export) 8=250, (government purchases) T = 0.25 (tax rate), 1 =900 (real money supply). i. Calculate the values of y and r, at equilibrium (7mks)

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