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Suppose government purchases rise. Using the new classical model with rational expectations, explain and diagrammatically represent what happens in the short run and in the
- Suppose government purchases rise. Using the new classical model with rational expectations, explain and diagrammatically represent what happens in the short run and in the long run to P, Y, W, and N if policy is anticipated incorrectly, bias up. Next, draw both the short-run and long-run Phillips curves that are consistent with your results.
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Forecasting for Economics and Business
Authors: Gloria Gonzalez Rivera
1st edition
131474936, 978-1315510415, 1315510413, 978-0131474932
