MACROECONOMICS
10th Edition
ISBN: 9781319106072
Author: Mankiw
Publisher: MAC HIGHER
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Question
Chapter 14, Problem 1MPA
(a)
To determine
The assumptions need to yield the model of classical large open economy.
(b)
To determine
The assumptions need to yield the Keynesian-cross model.
(c)
To determine
The assumptions need to yield the IS-LM model for large open economy.
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Please solve this, no words or explanations.
17. Given that C=$700+0.8Y, I=$300, G=$600, what is Y if Y=C+I+G?
Use the Feynman technique throughout. Assume that you’re explaining the answer to someone who doesn’t know the topic at all. Write explanation in paragraphs and if you use currency use USD currency:
10. What is the mechanism or process that allows the expenditure multiplier to “work” in theKeynesian Cross Model? Explain and show both mathematically and graphically. What isthe underpinning assumption for the process to transpire?
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