Question: Question 2 [15 pts] Using the Real Intertemporal Model seen in class, suppose the government announces a de- crease in future government spending G'. 2.

Question 2 [15 pts] Using the Real Intertemporal Model seen in class, suppose the government announces a de- crease in future government spending G'. 2. Assuming that the change in Yd is in absolute value more important than the change in 1'", what are the equilibrium eects on Y" and 1"\"? [04 pts]

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