Macroeconomics (9th Edition)
9th Edition
ISBN: 9780134167398
Author: Andrew B. Abel, Ben Bernanke, Dean Croushore
Publisher: PEARSON
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Question
Chapter 11, Problem 3NP
a.
To determine
To describe: The equation of IS curve, as per Keynesian closed economy theory.
b.
To determine
To describe: The equation of LM curve in the short run, while the price level remains fixed at
c.
To determine
To describe: The new output levels, real interest rate, consumption and investment.
d.
To determine
To describe: The new output levels, real interest rate, consumption, investment and price level for long run.
e.
To determine
To describe: The velocity value in the equilibrium of long run.
f.
To determine
To describe:
If
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Suppose real and potential GDP are initially equal. If the Fed increases the target inflation rate, then in the short run we would expect
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Chapter 11 Solutions
Macroeconomics (9th Edition)
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