Static classical ad or yp model

Reference no: EM1315702

1. Using the static classical AD/YP model, demonstrate the effect of each of the following changes.

a. An increase in tax rates (assuming the classical effect holds)
b. An increase in government purchases funded by increased borrowing
c. An increase in the capital stock
d. An improvement in technology
e. An increase in the money supply

Reference no: EM1315702

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