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Large country model - PowerPoint PPT Presentation

LECTURE 6: MACROECONOMIC INTERDEPENDENCE (I) Interdependence: Y depends on Y*.

LECTURE 6: MACROECONOMIC INTERDEPENDENCE (I) Interdependence: Y depends on Y*. (II) The two-country model, to be used for a country big enough to affect world income Y*. Simultaneous determination of Y & Y*. Implication of repercussion effects for the multiplier.

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Large country model - PowerPoint PPT Presentation

LECTURE 6: MACROECONOMIC INTERDEPENDENCE (I) Interdependence: Y depends on Y*.