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Let us assume that the product, money, labor, and output markets are in equilibrium at yo, Po, No, and ro. Calculate yz, y3, and

  

Figure 1 1.B. The effect of a Monetary Policy Stimulus in the Static Model [Increase in money supply] MO To TS TS LO So (a) w 

Variable Numerical Values Write the equation and the numerical value of the relevant Multiplier that measure the change in y 

Let us assume that the product, money, labor, and output markets are in equilibrium at yo, Po, No, and ro. Calculate yz, y3, and P3 when dm = 100. (20 points) [g=g + gy(y) + gr(r)] Table 1 y0 = dMs = MPC = c' MPT = t' MPI = nx' g'y = 1'2= g'r= I` = k' I' M = PO = dp/dy|s= 2000 100 0.9 0.1 -0.05 -0.1 -5 -5 -10 -40 0.3 -20 100 20 0.02 Figure 1 1.B. The effect of a Monetary Policy Stimulus in the Static Model [Increase in money supply] To TS T T (a) W P3 Lo P3-g(N) Po "E(N) No N3 Ny Mo So P3-f(N) Po f(N) Di Do Variable Write the equation and the numerical value of the relevant Multiplier that measure the change in y From yo to y and y3. Y2 P3 Write the equation that determine the change in p from Po to P3 dp = Numerical Values y2 = Y3 = P3 =

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