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The IS-LM model simultaneously determines equilibrium in two markets. a. Which two markets? b. What two variables adjust to bring equilibrium in the markets? c.

The IS-LM model simultaneously determines equilibrium in two markets.

a. Which two markets?

b. What two variables adjust to bring equilibrium in the markets?

c. List an event that can list IS left. What is the effect on interest rates and output? Higher, lower, the same?

d. List an event that can list LM right. What is the effect on interest rates and output? Higher, lower, the same?

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