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Business, 16.07.2019 18:30 ofkameron50

Consider the following keynesian economy c = a + b(y − t) g = g¯ i = i0 − i1r + i2 t = t¯ md = c0 + c1y − c2r ms = m¯ is a variable that measures business confidence. assume the level of business confidence decreases. what will happen to the equilibrium price and output in the following two cases? case 1: price is perfectly sticky case 2: price is partially sticky

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Consider the following keynesian economy c = a + b(y − t) g = g¯ i = i0 − i1r + i2 t = t¯ md = c0 +...
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