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Answer to Question #36556 in Macroeconomics for KELVIN
Question #36556
An open macroeconomic model is represented parametrically as followY=Io+Go+X0-M, M=mo+m1yd,C=co+c1yd, T=tY and Yd=T-T
(i) Compute the equilibrium income
(ii) Derive any two multipliers in respect to the endogenous variables
(iii) Interpret the multipliers and explain their significance in policy context
(i) Compute the equilibrium income
(ii) Derive any two multipliers in respect to the endogenous variables
(iii) Interpret the multipliers and explain their significance in policy context
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