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When we adjust the model to include consumer preferences over both C and G,the government can optimally choose government spending.Explain some of the difficulties the government may encounter in trying to determine G*.Specifically,compare this problem with the one the market solves in competitive equilibrium in the original model where G is fixed exogenously.
Robert E. Kelley
An academic and author known for his contributions to the understanding of followership and the dynamics of leadership.
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