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Solve for the equilibrium level of Y Solve for the equilibrium level of C Solve for the equilibrium level of S Let Y* equal $16,000,
- Solve for the equilibrium level of Y
- Solve for the equilibrium level of C
- Solve for the equilibrium level of S
- Let Y* equal $16,000, using fiscal policy (G) move the economy to Y*
- Let Y* equal $16,000, using fiscal policy (TR) move the economy to Y*
- What will be the impact on the government Deficit/surplus, assuming the government choses to use G? ( Assume the economy moves form the original position to Y* using deltaG)
- Graph the process, using the Keynesian Cross Model
- Explain the first four rounds in the adjustment process from the original equilibrium to potential GDP (Y*).
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