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    Macroeconomics Study Set 30
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    Exam 15: Dsge Models: the Frontier of Business Cycle Research
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    When Taxes Are Included in the Stylized DSGE Model, with Cobb-Douglas
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When Taxes Are Included in the Stylized DSGE Model, with Cobb-Douglas

Question 68

Question 68

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When taxes are included in the stylized DSGE model, with Cobb-Douglas production, labor demand is given by w=(1−τ)⋅MPLw = ( 1 - \tau ) \cdot M P Lw=(1−τ)⋅MPL
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