Answer to Question #66480 in Macroeconomics for kwame
a. Solve for equilibrium output.
b. What is the multiplier? Explain what the following symbols in the equation stand for. c0, c1, t0, t1, YD, b0 and b1.
c. How will a drop in all C, I and G affect inflation? Illustrate this in DIAGRAM with AD and long-run AS.
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