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![SOLVED: 3. (Policy intervention and the long-run) Consider the AD-AS model AD:y=m-p+y SRAS:y=ap-E[p])+y+ The variable represents a shock with E[] = 0. Expectations on prices are formed following a behavioral rule E[p] =](https://cdn.numerade.com/ask_images/3c6d89cfa2ca4a5ab7527edbfb1f74ae.jpg "SOLVED: 3. (Policy intervention and the long-run) Consider the AD-AS model AD:y=m-p+y SRAS:y=ap-E[p])+y+ The variable represents a shock with E[] = 0. Expectations on prices are formed following a behavioral rule E[p] =")
SOLVED: 3. (Policy intervention and the long-run) Consider the AD-AS model AD:y=m-p+y SRAS:y=ap-E[p])+y+ The variable represents a shock with E[] = 0. Expectations on prices are formed following a behavioral rule E[p] =
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Value-Added Tax (VAT)
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