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Explain please. 5) Consider the following market equilibrium: IS: Y = C(Y - t(Y)) + i(r)+g M LM: D = 1(r) + k(y ) a)

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5) Consider the following market equilibrium: IS: Y = C(Y - t(Y)) + i(r)+g M LM: D = 1(r) + k(y ) a) Find out the government expenditure multiplier. b) Find out the tax multiplier. c) Find out the balanced budget multiplier. d) Find out the money multiplier. 6) Consider the following macro model: IS: Y = C ( Y - t (Y) ) +i(r ) + g LM: =1(r) + k(y) Production Function: Y = Y(N, K) Where, N = Labor input; K = fixed capital stock a) Find out the demand for labor of a competitive firm. b) Find out the demand for labor of a monopoly firm. c) Find out the aggregate demand for labor of an economy

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