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    Consider the following “fixed-price” Keynesian model.
    y = c(r,y-t) + I(r)+ g
    M/P = L(i; y)
    n = f^-1(y)
    n^s(W/P) = n

    The endogenous variables are: y, n, W, and i.

    The exogenous variables are: pie^e, g, P, t; and M.

    For this model derive the comparative static results showing the qualitative
    effects on this model economy of a fully anticipated balanced-budget contraction
    of government expenditure. HINT: Use Cramer’s Rule to help solve.
 
 
 
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