Question
Suppose the global cost of raw materials used as inputs by firms falls. How does this cost shock affect (i) AD/AS curves and (ii) IS/LM
Suppose the global cost of raw materials used as inputs by firms falls. How does this cost shock affect (i) AD/AS curves and (ii) IS/LM curves?
I was thinking the AD/AS curves shift to the right but not sure about the IS/LM curves
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Introductory Econometrics A Modern Approach
Authors: Jeffrey M. Wooldridge
4th edition
978-0324581621, 324581629, 324660545, 978-0324660548
