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Consider the following model of a closed macroeconomy. The Labour Market Y = 60N - N2/2 N = 60-W/P (1) (2) Production functio

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IS wwe : Ya C+I+G = 140+.75 (Y-T) +I+G Y = 140+0.75 LY->) + 20 +0.2%-a moi + 150 > Y + 20+ 0.27 - 200 i 150 140 +6.75 [27/337

60 1.5 i. N = 0.5(40) 100-40) labour supply labour demand : Y = b0n-w² - 60 (20) - (2012 1900 - 400 9 1 200 200 = 1000 in o m

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