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    Principles of Macroeconomics Study Set 12
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    Exam 12: Policy Effects and Cost Shocks in the Asad Model
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    In a Binding Situation, Equilibrium Is Where the IS Curve
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In a Binding Situation, Equilibrium Is Where the IS Curve

Question 97

Question 97

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In a binding situation, equilibrium is where the IS curve crosses the interest rate at zero.

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