Explain the effect of an increase in exports on the equilibrium GDP in the Keynesian income-expenditure model. In your answer, carefully show the new equilibrium and explain the adjustment to the new equilibrium.
Explain the effect of an increase in exports on the equilibrium GDP in the Keynesian income-expenditure model. In your answer, carefully show the new equilibrium and explain the adjustment to the new equilibrium.
Chapter8: The Keynesian Model
Section: Chapter Questions
Problem 2SQP
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