=+ 2. Use the ISLM model to predict the shortrun effects of each of the following shocks

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=+ 2. Use the IS–LM model to predict the shortrun effects of each of the following shocks on income, the interest rate, consumption, and investment. In each case, explain what the Fed should do to keep income at its initial level.

a. After the invention of a new high-speed computer chip, many fi rms decide to upgrade their computer systems.

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Macroeconomics

ISBN: 9781429240024

8th Edition

Authors: N Gregory Mankiw

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Question Posted: Sep 30, 2024 03:00 AM

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=+ 2. Use the ISLM model to predict the shortrun effects of each of the following shocks

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Macroeconomics

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