1.1. An excellent way to learn about how changes in vari- ous factors affect the IS and...
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1.1. An excellent way to learn about how changes in vari- ous factors affect the IS and LM curves is to visit www Ign.unisg ch/eurmacro/tutor/islm.html. This site, spon- sored by the World Bank, allows you to make changes and to observe immediately their impact on the ISLM model.
a. Increase G from 200 to 500. What happens to the interest rate?
b. Reduce to 0.1. What happens to aggregate out-put Y?
c. Increase M to 450. What happens to the interest rate and aggregate output?
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Related Book For 
The Economics Of Money Banking And Financial Markets
ISBN: 9780321598905
9th Edition
Authors: Frederic S. Mishkin
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