Macroeconomics
10th Edition
ISBN: 9780134896441
Author: ABEL, Andrew B., BERNANKE, Ben, CROUSHORE, Dean Darrell
Publisher: PEARSON
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Question
Chapter 10, Problem 1AP
a)
To determine
The effect of increase in the expected future MPK, using the IS-LM model on the following:
- Current output
- The real interest rate
- Consumption
- investment
- the price level
b)
To determine
The effect of increase in the expected future MPK, using the AD-AS model on the following:
- Current output
- The real interest rate
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