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Question 5 (Useful government spending) Let us generalize the oneperiod macroeconomic model in Williamson chapter 5 to allow for useful government spending. Suppose that government

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Question 5 (Useful government spending) Let us generalize the oneperiod macroeconomic model in Williamson chapter 5 to allow for useful government spending. Suppose that government spending produces public goods and services that are essential for private production. A simple way to model that is to treat G as an additional input in the production function of the representative firm, for example, Y=zKaNlGl'\"\"l, 0

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