Y_and_PAE_Example - 6500 6430 70 RISING INVENTORIES 6750...

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C_BAR 820 Autonomous Consumption MPC 0.7 Marginal Propensity to Consume I 600 G 600 NX 0 TAX 200 OUTPUT PLANNED AGGREGATE EXPENDITURE Y - PAE INVENTORIES 5000 5380 -380 FALLING INVENTORIES 5250 5555 -305 FALLING INVENTORIES 5500 5730 -230 FALLING INVENTORIES 5750 5905 -155 FALLING INVENTORIES 6000 6080 -80 Y=PAE 6250 6255 -5 RISING INVENTORIES
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Unformatted text preview: 6500 6430 70 RISING INVENTORIES 6750 6605 145 RISING INVENTORIES 7000 6780 220 RISING INVENTORIES Short Run Equilibrium 5000 5200 5400 5600 5800 6000 6200 6400 6600 6800 7000 5000 5250 5500 5750 6000 6250 6500 6750 7000 Output (Y) Planned Aggregate Expenditure (PAE)...
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This note was uploaded on 01/28/2011 for the course ECON 104 taught by Professor Voss during the Winter '10 term at University of Victoria.

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Y_and_PAE_Example - 6500 6430 70 RISING INVENTORIES 6750...

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