Hab die eng Ausgabe
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Aufgabe2
a) Using the as-ad model developed in this chapter, show the effects of an increase in consumer confidence (so that consumption increases for any level of disposable income) on the postion of the ad, as, is, and lm curves in the medium run. Then show the effect on output, the interest rate, and the price level, also in the medium run. Assume that befor the increase in consumer confidence, the economy was at the natural level of output.
b) Do the same exercise for an increase in income taxes.
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