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According to the Keynesian IS - LM model, what is the effect of the following on output, the real interest rate, employment, and the price
According to the Keynesian IS - LM model, what is the effect of the following on output, the real interest rate, employment, and the price level of an economy? Distinguish between effects in the short-run and in the long-run. Your answers in each column should be relative to the original long-run equilibrium levels of each variable. An increase in consumer confidence, as consumers expect that their incomes will be higher in the future. Shortrun Longrun Output: VI {mm Real Interest Rate: V Employment: y Price Level: VI 4444
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