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Use the Classical (RBC)IS-LM-FE Model to Show the Effects on the Economy

Question 23

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Use the classical (RBC)IS-LM-FE model to show the effects on the economy of a temporary beneficial supply shock; for example,a decrease in the price of oil.You should show the impact on the real wage,employment,output,the real interest rate,consumption,investment,and the price level.

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The marginal productivity of labor is in...

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