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Consider the following model of a closed economy:Yd=C+I+GC=300+0.75(Y-T)Y=YdMd/P=0.05(Y/(r+πe))Ms/P=Md/PG=195T=400Ms=4800P=2πe=0.035
a) find the equation that describes the IS curve b) find the equation that describes the LM curvec) find the equilibrium values of real interest rate and incomed) if autonomous consumption rises from 300 to 400 how will this affect the equilibrium level of income?
Consider we did technological change in the class where it does contribute to one side of the production use that to understand the problem.
Illustrate what money supply should the Fed set in yr 2009 if it wants to keep the price level stable?
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Among which of the following U.S. policies and institutions may negatively influence U.S. long-run economic growth.
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