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Is a good exemplory case of an enthusiastic optimization status, and also the function \(f(x,y)\) is named the mark setting. The brand new axes of one’s drawing is the complete efficiency (or genuine GDP) for the x (horizontal) axis and you may aggregate demand (aggregate costs or need demand) for the y (vertical) axis. The newest Keynesian multiplier construction is usually graphically depicted to your the brand new Keynesian mix attracting.
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