1 1 Assumptions1.1 AssumptionsRll Atif Ch 3Recall Assumptions of Ch.31.Assume that all firms produce the same good.2.Assume that firms are able and willing to produce any amount of output that is demanded without requiring any changes in prices. (This assumption is maintained until Ch. 6)3. Assume that the economy is closed (i.e.,3.Assume that the economy is closed (i.e., X=IM=0). [This assumption is dropped in Ch 18]3
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