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) Suppose that the full-employment level of output (YF*) is $3000m. To achieve YF*, the government incurs an additional expenditure of $60m. Using this information:
) Suppose that the full-employment level of output (YF*) is $3000m. To achieve YF*, the government incurs an additional expenditure of $60m. Using this information: (i) Determine the magnitude of crowding-out that result from the above expansion. (ii) Calculate the accommodative change in the money supply that is required to simultaneously eliminate the crowding-out effect as well as to move the economy to full employment level of output
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