Question: 4. In a model similar to Samuelson's interaction model between the multiplier and the accelerator, assume Y; = C: + I: + Gt Ct =

4. In a model similar to Samuelson's interaction model between the

4. In a model similar to Samuelson's interaction model between the multiplier and the accelerator, assume Y; = C: + I: + Gt Ct = Q. + CYt_1 It = JrI] + W(Ct _ Ctl) where00anth=Go a) Find the time path Y(t) (5 marks) h) Comment on the stability conditions (2 marks)

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