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Suppose we extended the our assumption in equation 13 so that unemployment is a function of both monetary and fiscal policies as U = g(M,F) and inflation is also a function of both monetary and fiscal policies as π =h(M,F).

A) Find the partial derivate of both unemployment and inflation with respective to monetary and fiscal policies and interpret the result?

B) Find the derivative of the vote ratio with respect to both monetary and fiscal policies and interpret the result?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M947093

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