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Using the IS-LM model. First, use the IS-LM model to describe the shock to the economy the COVID-19 pandemic initially caused. Draw and explain only
Using the IS-LM model. First, use the IS-LM model to describe the shock to the economy the COVID-19 pandemic initially caused. Draw and explain only one shift first including the new equilibrium level of output and nominal interest rate. Second, use the model to describe EITHER the fiscal or monetary response to the pandemic. Draw and explain the shift including the new equilibrium level of output and nominal interest rate
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