5. Define general equilibrium and show the general equilibrium point in the ISLM diagram. If the economy

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5. Define general equilibrium and show the general equilibrium point in the IS–LM diagram. If the economy isn’t in general equilibrium, what determines output and the real interest rate? What economic forces act to bring the economy back to general equilibrium?

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Macroeconomics

ISBN: 126164

8th Edition

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

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