Question
please help me with this question Aggregate Demand and Supply [5 marks] (a) Derive the AD curve from IS-LM. Explain in words. [3 marks] (b)
please help me with this question
Aggregate Demand and Supply [5 marks]
(a) Derive the AD curve from IS-LM. Explain in words. [3 marks]
(b) Show using the AD-SRAS-LRAS curves what happens to real interest rate, output and prices in the short-run and the long-run if there is a temporary increase in government purchases for military purposes. Will it matter whether the temporary increase in military spending is funded by taxes or by borrowing? [2 marks]
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The Commanding Heights The Battle For The World Economy
Authors: Daniel Yergin, Joseph Stanislaw
1st Edition
068483569X, 9780684835693
