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Unformatted text preview: 1 The Keynesian Cross 45 ° Y I +G+(1s)(YT) = I +G+(1s)(1t)Y = Y I +G(1 s)T 1s Y Ch. 10 ISLM, AS – AD Analysis Review (continued) 2 The Keynesian Cross 45 ° Y I +G+(1s)(YT) = Y I +G(1 s)T 1s Y Ch. 10 ISLM, AS – AD Analysis Review (continued) I +G+ ∆ G(1 s)T Fiscal action ∆ G 3 The Keynesian Cross 45 ° Y I +G+(1s)(YT) = I +G+(1s)(1 t)YT = Y I +G(1s) T (1s)(1 t) Y Ch. 10 ISLM, AS – AD Analysis Review (continued) T = t Y + T (1s)[1(t ∆ t )] Fiscal action  ∆ t 4 The Hicksian program of Synthesis r Y LM The classical special case The general case The Keynesian special case 5 The Hicksian program of Synthesis r Y LM The general case I S 1 . The general case: fiscal policy matters somewhat 6 The Hicksian program of Synthesis r Y LM The Keynesian special case I S 2 . The Keynesian case: only fiscal policy matters 7 The Hicksian program of Synthesis r Y LM The classical special case IS 3 . The Classical case: fiscal policy does not matters The shift of I S Schedule Effect 6 Causes Given Y Expected future Y ⇑ C ⇑ S(Y, r) ⇓ r Y The shift of I S Schedule Effect 6 Causes Given Y Expected future Y ⇑ C ⇑ S(Y, r) ⇓ Expected Wealth ⇑ r Y The shift of...
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This note was uploaded on 06/01/2010 for the course ECON 3140 at Cornell University (Engineering School).
 '07
 MBIEKOP
 Macroeconomics

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