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Macroeconomics 6th Edition by Robert Hall,Marc Lieberman
Edition 6ISBN: 978-1111822354Macroeconomics 6th Edition by Robert Hall,Marc Lieberman
Edition 6ISBN: 978-1111822354 Exercise 3
Consider the following statement: "In the classical model, just as an increase in government purchases causes complete crowding out, so a decrease in government purchases causes complete crowding in."
a. In this statement, explain what is meant by "crowding in" and "complete crowding in."
b. Is the statement true? (Hint: Look at the diagram you drew in problem 2.)
Reference diagram in problem 2:
a. In this statement, explain what is meant by "crowding in" and "complete crowding in."
b. Is the statement true? (Hint: Look at the diagram you drew in problem 2.)
Reference diagram in problem 2:
Explanation
Verified
Verified
(a)"Crowding out" is a situation where a...
Macroeconomics 6th Edition by Robert Hall,Marc Lieberman
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