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Unformatted text preview: 3. Baumol and Blinder, Ch. 9, Test Yourself, problem 6. In addition, if G and T each increase by $100, what is the effect on the AD curve? Does it shift, and if so, by how much? 4. Suppose NX=X-IM =0. If the economy has a recessionary gap, how do national saving and investment compare? How do they compare if the economy has an inflationary gap?...
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- Spring '05