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KZCt+It+Gt+EXt1Mt %=ac+:l~; 0 m 0 G = gYt 1M = O Instead of the textbook investment function, consider the following accelerator investment function where investment
G = gYt 1M = O Instead of the textbook investment function, consider the following "accelerator" investment function where investment rises with short run outptut: -b(Rt -r) + iyYt; b > O; O < try < 1 (a) Derive the IS curve as a relation between short run output Yt and the real interest rate gap Rt r.
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Understanding Globalization The Social Consequences Of Political, Economic, And Environmental Change
Authors: Robert K Schaeffer
4th Edition
0742561801, 9780742561809
