2. What relationship does the IS curve capture? Derive the IS curve graphically and show why it...

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2. What relationship does the IS curve capture? Derive the IS curve graphically and show why it slopes as it does. Give two examples of changes in the economy that would cause the IS curve to shift down and to the left.

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Macroeconomics

ISBN: 126164

8th Edition

Authors: Andrew B. Abel, Ben Bernanke, Dean Croushore

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