a. Shift the appropriate curve or curves to show the initial short-run adjustment. Then place the points for short-run equilibrium and long-run equilibrium in their appropriate places. IS-LM Model Long-run equilibrium Short-run equilibrium LM IS Income, Output, Y Real Interest Rate, r

a. Shift the appropriate curve or curves to show the initial short-run adjustment. Then place the points for short-run equilibrium and long-run equilibrium in their appropriate places. IS-LM Model Long-run equilibrium Short-run equilibrium LM IS Income, Output, Y Real Interest Rate, r

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter20: Aggregate Demand And Supply

Section20.A: The Self Correcting Aggregate Demand And Supply Model

Problem 3SQP

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Question

a. Shift the appropriate curve or curves to show the initial short-run adjustment. Then place the points for short-run equilibrium
and long-run equilibrium in their appropriate places.
IS-LM Model
Long-run equilibrium
Short-run equilibrium
LM
IS
Income, Output, Y
Real Interest Rate, r

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