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Explain what happens to the macroeconomy in the IS- Curve in each of the following circumstances: (a) There is deep recession in Europe. (b) Housing
Explain what happens to the macroeconomy in the IS- Curve in each of the following circumstances: (a) There is deep recession in Europe. (b) Housing values rise above their trend. (c) Mortgage lenders raise interest rates. (d) The government decides to close 20 percent of its military bases around the country.
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