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Q. Assumptions of the AS-AD model?
The most significant change we make going from IS-LM model to AS-AD model is to allow P to be endogenous. As P was constant in IS-LM model, we must 'redo' IS-LM model allowing P to be endogenous. Here is a summary of changes which should be made and what won't change:
A, Explain how a person can be free to choose but his or her choices are casually determined by past event 2 B , Draw the casual tree for newcomb''s problem when Eve can''t perfe
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