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Suppose the initial conditions of the economy are characterized by the following equations in black font. We then shock the economy as shown in the red font. What is the value of Investment: I = Fill in the intercept and slope values to correctly complete the AE equation: AE = The value of equilibrium output (Y) = The value of equilibrium consumption (C) = We now incur shocks to the economy as provided in the red font. Use these new conditions to get expressions for the Consumption function, Inv...
ECON 104 HOMEWORK 4 QUESTIONS AND ANSWERS
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Suppose the initial conditions of the economy are characterized by the following equations in black font. We then shock the economy as shown in the red font. What is the value of Investment: I = Fill in the intercept and slope values to correctly complete the AE equation: AE = The value of equilibrium output (Y) = The value of equilibrium consumption (C) = We now incur shocks to the economy as provided in the red font. Use these new conditions to get expressions for the Consumption function, Inv...
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