Macroeconomics (Fourth Edition)
Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
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Chapter 15, Problem 4E

(a)

To determine

The impact of decline in government purchases on the labor market.

(b)

To determine

The impact of decline in government purchases on the labor market when prices are rigid in nature.

(c)

To determine

Impact of increase in government purchase in the labor market in relation with impulse response functions.

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