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Buletin Ekonomi Moneter dan Perbankan
The purpose of this research is to observe the impact of the budget deficit policy on the macroeconomic variables in general, and specifically on the monetary variables in the short and long run.We apply macroeconomic model with rational expectation specification to allow agents altering their economic decision in encountering the authority policies. The model constructed contains eight (8) long run behavior equations, eight (8) short run behavior equations, four (4) rational expectationdoi:10.21098/bemp.v7i2.112 fatcat:fwc34qvndrftvdgswoaa4tckne