QUEST II. A Multi-Country Business Cycle and Growth Model

difference from base                                                      difference from base

Chart 1: Long-run GDP-effect

Permanent Reduction of Government Purchases by 1 %of GDP and

.......SS

----TCD

.......NTC

------TCL

time

Chart 2: Short-run GDP-Effect

Permanent Reduction of Government Purchases by 1% of GDP and

time

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