(Answered) Use the aggregate demand - aggregate supply modelnbspto

Management Studies

Use the aggregate demand - aggregate supply model to explain - don't just give the direction - what would happen in the short-run (period 1) and in the long-run to Y, π, r, C, I, and NX if there was an increase in the exogenous level of C.(10 points)

where _ _

C= C + mpc(Y-T) - c r and C = exogenous or autonomous part of C

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