Redo Exercise 11.44, this time assuming Et = 100 + 1.5Yt + 0.2Yt1. Exercise 11.44 Consider this

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Redo Exercise 11.44, this time assuming Et = 100 + 1.5Yt + 0.2Yt−1.

Exercise 11.44

Consider this income-expenditure model: image text in transcribed

where Y is aggregate income and E is aggregate spending. Is this model monotonically stable, cyclically stable, monotonically unstable, or cyclically unstable?

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Essential Statistics Regression And Econometrics

ISBN: 9780123822215

1st Edition

Authors: Gary Smith

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Question Posted: Mar 20, 2024 01:00 AM

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Redo Exercise 11.44, this time assuming Et = 100 + 1.5Yt + 0.2Yt1. Exercise 11.44 Consider this

Question:

Y = E E = 100 +0.5Y, +0.2Y-1 100+0.5Y,+0.2Y

Step by Step Answer:

Essential Statistics Regression And Econometrics

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