Question
Consider the following AS and AD equations: AS: YAS=96+42P12Poil AD: YAD=132616P+8G A) Suppose the AD curve is a horizontal function. Initially, Poil = 83 per
Consider the following AS and AD equations:
AS: YAS=96+42P12Poil
AD: YAD=132616P+8G
A) Suppose the AD curve is a horizontal function. Initially, Poil = 83 per barrel and G = 425. What is the simple multiplier if the price of oil were to increase by $1?
B)Suppose the AS curve is a horizontal function. Initially, Poil = 83 per barrel and G = 425. What is the simple multiplier if G were to increase by $1?
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Microeconomics Principles, Problems and Policies
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
20th edition
978-0077660819, 77660811, 978-1259450242
