Use a spreadsheet to trace out the pattern of adjustment of Yt towards its new equilibrium value in the model if It is exogenously increased from 240 to 350 and then kept at this new level. Assume the system was initially in equilibrium. What is the value of C in the fourteenth time period after this increase in It?
Use a spreadsheet to trace out the pattern of adjustment of Yt towards its new equilibrium value in the model if It is exogenously increased from 240 to 350 and then kept at this new level. Assume the system was initially in equilibrium. What is the value of C in the fourteenth time period after this increase in It?
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Use a spreadsheet to trace out the pattern of adjustment of Yt towards its new equilibrium value in the model
if It is exogenously increased from 240 to 350 and then kept at this new level. Assume the system was initially in equilibrium. What is the value of C in the fourteenth time period after this increase in It?
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