Medium-run that will raise full-employment output

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Reference no: EM132181694

Suppose we get news today that there will be a big technology improvement in the medium-run that will raise full-employment output in the medium-run.

  1. Illustrate what happens in the short-run. (Assume that the initial equilibrium involved all three markets in equilibrium.)  what happens to Y, r, C, S and I.

Reference no: EM132181694

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