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Assume that the economy starts at the 'natural rate of output'. Now suppose there is a loss of investors' confidence, as a result, investment expenditure
Assume that the economy starts at the 'natural rate of output'. Now suppose there is a loss of investors' confidence, as a result, investment expenditure falls. Use the IS-LM and IS-MP diagrams to show the effects in the short run and the medium run. Show how expansionary fiscal policy may influence these equilibrium positions
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Managerial Economics and Strategy
Authors: Jeffrey M. Perloff, James A. Brander
2nd edition
134167879, 134167872, 9780134168319 , 978-0134167879
