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Define carefully what is meant by equilibrium in the multiplier model. For each of the following, state why the situation

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Define carefully what is meant by equilibrium in the multiplier model. For each of the following, state why the situation is not an equilibrium. Also describe how the economy would react to each of the situations to restore equilibrium.
a. In Table 22-2, GDP is $3300 billion.
b. In Figure 22-7, actual investment is zero and output is at M.
c. Car dealers find that their inventories of new cars are rising unexpectedly.

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Economics

Economics

ISBN: ?978-0073511290

19th edition

Authors: Paul A. Samuelson, William Nordhaus

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Question Posted: December 05, 2015 03:35:32
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