Inflation Rate
Output
2
0
-2
Consumption (Ricardian Households)
0∣—--------------------
X
-1 ʌ_______
-21—.-------.-------.-------.-------
2 4 6 8 10
Figure 5: Estimated Impulse Responses to a Government Spending Shock
48
An Estimated DSGE Model of the Indian Economy.
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