Use a spreadsheet to trace out the pattern of adjustment of, Microeconomics

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Use a spreadsheet to trace out the pattern of adjustment of

Question: Use a spreadsheet to trace out the pattern of adjustment of Yt towards its new equilibrium value in the model

Y_t = C_t + I_t

C_t = 310 + 0.7Y_t-1

if It is exogenously increased from 240 to 350 and then kept at this new level. Assume the system was initially in equilibrium. What is the value of C in the fourteenth time period after this increase in It?

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Microeconomics: Use a spreadsheet to trace out the pattern of adjustment of

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