Name and discuss the factors that shift the LM Curve. Give 2 examples with the aid of a diagram of LM curve shifting, one to the left and one to the right.
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Name and discuss the factors that shift the LM Curve. Give 2 examples with the aid of a diagram of LM curve shifting, one to the left and one to the right.
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- what relationship does LM curve plot? explain in words and graphically, why LM curve slops downward.Derive the IS LM curves and briefly explain how the general macroeconomic equilibirum can be reachedWhat do the IS curve and the LM curve represent? What is the reason for their respective shape and what causes the IS and LM curves to shift?
- Draw diagram of a typical IS-LMmodel and indicate the changes in all the variables on the diagram should there be an increase in aggregate expenditure causing a shift of the IS curve to the right ( indicate the shift in the IS curve on your diagram) Indicate where macroequilibrium will be and properly label the axes on the diagram. Briefly explain what you understand such an IS-LM model is actually reflecting in terms of macroeconomicsShow shifts in AD using LM curve.Suppose the economy begins with output equal to its natural level. Then there is an increase in the supply of money. What are the immediate effects of a reduction in income taxes on the position of the AD, AS, IS, and LM curves in the SR. Could you help me with my Macroeconomics assignment? Thanks