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Start with C(t) = 200 + 0.8Y(t), I=150, G=250. Set initial income at the equilib...
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Start with C(t) = 200 + 0.8Y(t), I=150, G=250. Set initial income at the equilibrium level Y*. Derive the dynamic multiplier k(t)=(Y(t) – Y*)/ΔI for a rise in investment of 50 (from t=1).
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