345 2012 MT with answers

Show all shifts clearly and make a chart

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Unformatted text preview: rizingthe direction of the effects on Y, 9,:r"-and P. (8) (b) Suppose it was assumed instead that expected second period incomes were not constant, but actually were anticip ated to fall by even more than the first period decline. This might have been the case early on in our recent financial crisis. Do this problem separately with 5 a {rt; \\ -Y * boc'r} de t \ c'r''it '' r: 6)'ec' r ? / r) '/ L\ -- P., " , de'nnr'nC 'f r - fl'ot.t - *[on.] c-rr.1:p"a ii'i \ or"':'t: ini?i{rj r,.:q 'far'tir'1^i. : f\q\/ ,/ (J'. t {1vnc^^tl :r r t t 'r' "i 1', t t. 5) fo ng f1O \",..g r d!$* 'ics n e\ $*r'o-1 'f\E-! {."ltt eiu fr r c, t &"w"ttrlt'I )tc f"'& ,l i-JJ: d*". r il c cr.n'€- O: bo ttr \c'''\ :''r 1*9' '-r' ' g\-{cter"r -**e t cd4 fr,ri /') t\ f'v f. f, I Partial Solutions, Score: 9/15 Use as reference only. Answers may not be entirely correct. 2. 4Yo r.,lr{ i Consider an economy where the central bank, at time t, lowers the monetary growth rate from " \'r>;' to 2%o,lowerins expectations of inflation by the same amount. The public understan...
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This note was uploaded on 01/19/2014 for the course ECON 345 taught by Professor Sumaila during the Winter '09 term at UBC.

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