Consider the following classical economy: a. What are the equilibrium values of the real interest rate, real
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Consider the following classical economy:
a. What are the equilibrium values of the real interest rate, real exchange rate, consumption, investment, and net exports?
b. Now suppose that full-employment output decreases to 850 . What are the equilibrium values of the real interest rate, real exchange rate, consumption, investment, and net exports?
c. Suppose that full-employment output remains at 850 and that government purchases increase to 200. What are the equilibrium values of the real interest rate, real exchange rate, consumption, investment, and net exports?
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Related Book For 
Macroeconomics
ISBN: 9780134167398
9th Edition
Authors: Andrew B. Abel, Ben Bernanke, Dean Croushore
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