Question
Consider an IS equation that takes this form: Y = a b(Rt r) Explain the parameters and variables in this equation. Draw this IS curve.
Consider an IS equation that takes this form: Y = a b(Rt r)
Explain the parameters and variables in this equation. Draw this IS curve. What role does the IS curve play in the short-run model? In particular, what kind of economic questions does it be allow us to analyse?
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Exploring Economics
Authors: Robert L Sexton
5th Edition
978-1439040249, 1439040249
