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    Exam 17: Output and the Exchange Rate in the Short Run
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    Explain the Difference Between the Following Two Expressions
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Explain the Difference Between the Following Two Expressions

Question 25

Question 25

Essay

Explain the difference between the following two expressions:
Y = C(Yd)+ I + G + CA(EP Explain the difference between the following two expressions: Y = C(Y<sup>d</sup>)+ I + G + CA(EP   /P,Y<sup>d</sup>)and Y = C + I +G + CA /P,Yd)and
Y = C + I +G + CA

Correct Answer:

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The first one represents a behavioral eq...

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