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This page intentionally left blank ADVANCEDMACROECONOMICSF ourth EditioniThe McGraw-Hill Series in EconomicsESSENTIALS OFECONOMICSBrue, McConnell, and FlynnEssentials of EconomicsSecond EditionMandelEconomics: The BasicsFirst EditionSchillerEssentials of EconomicsEighth EditionPRINCIPLES OF ECONOMICSC olanderEconomics,Microeconomics, andMacroeconomicsEighth EditionFrank and BernankePrinciples of Economics,Principles ofMicroeconomics, Principlesof MacroeconomicsFourth EditionFrank and BernankeBrief Editions: Principles ofEconomics, Principles ofMicroeconomics, Principlesof MacroeconomicsSecond EditionMcConnell, Brue, and FlynnEconomics,Microeconomics,Macroecono micsNineteenth EditionMcConnell, Brue, and FlynnBrief Editions:Microeconomics andMacroeconomicsFirst EditionMillerPrinciples ofMicroeconomicsFirst EditionSamuelson and NordhausEconomics

Part A THE RAMSEY–CASS–KOOPMANS MODEL 49 2.1 Assumptions 49 2.2 The Behavior of Households and Firms 51 2.3 The Dynamics of the Economy 57 2.4 Welfare 63 2.5 The Balanced Growth Path 64 2.6 The Effects of a Fall in the Discount Rate 66 2.7 The Effects of Government Purchases 71 Part B THE DIAMOND MODEL 77 2.8 Assumptions 77 2.9 Household ...

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