Ch. 3 : National Income Determination II

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. . . C=Ca cYd. C. Y. . . . I=Ia. Y. I. . . . G=Ga. Y. G. . . . X=Xa. Y. X. . . . T=Ta. Y. T. . . M=Ma mY. . Y. M. . . AE=C I G (X-M). . Y. AE. . . Y*. . . . . Y. $. . I G X. . S T M. . Y*. Monetary Policy. Optional Fiscal Policyexpansionary monetary approach (1) expanded government burning through, (2) lower charges, or (3) a mix of the two. .

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