Macroeconomic Home Work
dabaosod0072. Consider a production economy as per class/Mankiw Ch.3 as follows: • Y = F(K, ¯ L¯) • Y = c(Y − T¯) + I(r) + G • w = MP L, R = MPK Suppose an earthquake destroys a chunk of the capital stock. What happens to Y ,R, w, C, I?
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