Mathematics, 06.05.2020 03:57 krystalhurst97
Use the IS Curve Y˜t = a − b(Rt − r), the Taylor rule R^f f t = r + m(πt − π), and the MP curve Rt = Rf f t + rho, to derive the AD curve: Y˜t = a − mb(πt − π), where a = ac + ai + ag + aex − aim − 1 − brho.
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Use the IS Curve Y˜t = a − b(Rt − r), the Taylor rule R^f f t = r + m(πt − π), and the MP curve Rt =...
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