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2 parents 5fb07e9 + a403d0b commit 841f62eCopy full SHA for 841f62e
lectures/geom_series.md
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Similarly, applying the Taylor series to $G^{T+1}$ about $g=0$:
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$$
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-(1+g)^{T+1} = 1+(T+1)g(1+g)^T+(T+1)Tg^2(1+g)^{T-1}+\dots \approx 1+ (T+1)g
+(1+g)^{T+1} = 1+(T+1)g+\frac{T(T+1)}{2!}g^2+\frac{(T-1)T(T+1)}{3!}g^3+\dots \approx 1+ (T+1)g
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Thus, we get the following approximation:
@@ -920,4 +920,3 @@ plt.show()
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Notice here, whether government spending increases from 0.3 to 0.4 or
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investment increases from 0.3 to 0.4, the shifts in the graphs are
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identical.
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