Question: Set up model (5.22) using the parameter values in model (5.17). What are the new equilibrium and the trajectory of the economy for the following
Set up model (5.22) using the parameter values in model (5.17). What are the new equilibrium and the trajectory of the economy for the following events (i) A rise in autonomous taxes from 0 to 10? (ii) A fall in the money supply from 8 to 5?
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