Question
Suppose the central bank's monetary policy sets the interest rate according to the function: i = 6 + 2( - * ) with * =
Suppose the central bank's monetary policy sets the interest rate according to the function:
i = 6 + 2( - *) with *= 4,
and aggregate expenditure is:
AE = 50 + 0.6Y - 5i
a)What is the equation for the AD curve? Use 'PI' to represent when entering your equation.
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The Rise And Fall Of Neoliberal Capitalism
Authors: David M Kotz
1st Edition
0674725654, 9780674725652
