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    Keynesian Cross model diagram and equation

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    Using the Keynesian Cross model diagram and equation, critically and briefly illustrate the short run and long run economic impact of recently passed 2005 National Highway & Mass Transit Bill of $300 billion to be spent over the next five years. (Hint: The impact will be in terms of major macroeconomic variables of US economy.)

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    Solution Summary

    Keynesian Cross model diagram and equation are applied.

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