The+correction+of+Keynesian+Cross+Model - The correction of...

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Unformatted text preview: The correction of Keynesian Cross Model: In our model, Where b is the intercept and c is the slope. In the case of two sample economies, they have different slope. The first economy has a steeper slope then the second economy. When the government purchase increases, the intercept b increases, say it increase by 5 units. So the change in output in the first economy is bigger than the second economy due to their slope difference. ...
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