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{"ops":[{"insert":"\nThe set of equations for an economic model is as follows:\u00a0\n Y = C + S + T , E = C + I* + G*\u00a0, C = A + bYD\u00a0, YD = Y - T\u00a0, T = T* + tY\u00a0, B = T \u2013 G*\u00a0\n, Y = E\u00a0\nA, I* and G* are the exogenous variables for autonomous consumption expenditure autonomous investment, government expenditure, respectively.\nThe following economic shock has occurred in this economy, ceteris paribus:\u00a0\nThe requirements for housing loans have been tightened.\u00a0\u00a0\nRepresent this economic shock by drawing an appropriate new function. Mark W2 if the appropriate new function is a withdrawal function, or J2 if the appropriate new function is an injection function, or both.\u00a0\nIndicate the following after the occurrence of the above economic shock in J-W curve:\u00a0\n(i) the new equilibrium point as point E2, and\u00a0\n(ii) the level of new equiliribium output as Y2\n"}]}
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