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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Consider the following classical economy:

a. What are the equilibrium values of the real interest rate, real exchange rate, consumption, investment, and net exports?
b. Now suppose that full-employment output increases to 940. What are the equilibrium values of the real interest rate, real exchange rate, consumption, investment, and net exports?
c. Suppose that full-employment output remains at 940 and that government purchases increase to 132. What are the equilibrium values of the real interest rate, real exchange rate, consumption, investment, and net exports?
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