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Determining the consumption and investment

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Reference no: EM131476093

A prospective change in governemnt purchases suppose that people learn in the current year that government purchases, Gi, will increase in some future year. current government purchaes, G1, do not change

a. What happened in the current year to real GDP, consumption and investment

b. Think of some real world cases to which this quetion applies?

Reference no: EM131476093

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