Question
Goods Market: Money Market: C=50 + 0.8(Y-T) M/P=490 I=120-400r L(r,y)=.5y-100r G=110 T=50 If the Government wanted to stabilize the economy while at the SR equilibrium
Goods Market: Money Market:
C=50 + 0.8(Y-T) M/P=490
I=120-400r L(r,y)=.5y-100r
G=110
T=50
If the Government wanted to stabilize the economy while at the SR equilibrium what three policies could they conduct? Show this graphically and calculate how large of each of the policies would need to be. How different are these policies from what would have been suggested from the Fiscal Multipliers that were learned in introduction to macro?
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Research Methods Design And Analysis
Authors: Larry Christensen
13th Edition
0205961258, 978-0205961252
