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    Hiya, I have three questions I need help on using the following model:



    Question 1.) Using only equations 1, 2 and 3 and assuming r is exogenous, an increase in G will cause output to rise by what?Answer is 1/(1-a1)*change in G

    Question 2.) Using the full model, an increase in G will cause output to rise by what?Answer is y/[1-a1)y+B%]*change in G where %= phi

    Question 3: Letting P=1, if the money supply M rises, the output will....?Answer is rise by B1 / [(1-a1)y +B1%]*change in M

    Any sort of direction towards the answers will be greatly appreciated! For question one I started by putting the long equation for y = C +i +g into the money supply equation but I'm just getting a really long winded answer when the answer is quite simple.

    Thanks xXx
 
 
 
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