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Consider a Keynesian model with the following specifications:C = a + b(Y - T) - cr I = i0 - i1r Md = c0 + c1Y - c2r P¯ = 1 {a, b, c, i0, i1, c0, c1, c2} = {5, 0.75, 0.2, 1.5, 0.8, 3, 0.3, 0.4}Suppose the policy makers in this economy are proposing an increase in taxes T such that?T = 10. Find the output absorbed by the change interest rate due to this shock. Notethat this is NOT the change in equilibrium output. In fact, it is the reverse of the Crowding Out effect.
A. 10.4
B. 22.5
C. 30
D. 7.5
Conservative European states agreed to Belgium's independence in 1831 under the condition that A The Belgians allowed Charles X of France to become their new king B Belgium would remain neutral in all international affairs C The Belgians did not enco..
Illustrate how do you think this would affect household spending on goods and services.
demand for a good of an industry is given by the equation pq=100, where p is the price and q is quantity and supply is given by the equation 20+3p=q. find out the equation price and quantity
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with the help of appropriate diagrams explain the following statement whether it is true false or uncertain an increase
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