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Fe312Q Prof. Smith Fall 2012 Working with the Real Intertemporal Model of the Economy Macro Model in Medium Run (Ch.12 loosely) 1. What are the impacts on equilibrium output, consumption, investment, and employment from an increase in government spending? 2. What are the impacts on equilibrium output, consumption, investment, and employment from an increase in the money supply (expansionary monetary policy)? 3. What are the impacts on equilibrium output, consumption, investment, and employment from a current increase oil prices?
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