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Fiscal Policy in the Long Run, Short Run and Very Short Run

March 3, 2025 at 3:53 AMv4

In the long-run model, G doesn't stimulate— It only crowds out I. Fed is powerless, too. Also, surprisingly, In the short-run model, G doesn't stimulate— It only crowds out I. In the very short run: planning delay, I fixed. G can then stimulate. Few know these secrets.

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