Question
Consider that during the early part of 2020, the US economy entered a recession as a result of the COVID-19 pandemic. As a part of
Consider that during the early part of 2020, the US economy entered a recession as a result of the COVID-19 pandemic. As a part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress, the government sent US households up to $1200 per person, depending on the level of income, to combat the effects of a recession. Use the IS-LM model to graphically illustrate the impact of this legislation on output and interest values. Be sure to label 1. the axes, 2. the curves, 3 the initial equilibrium values, 4. the direction the curves shift, and 5. the terminal equilibrium.
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