Explain the is-lm models biggest drawback

Assignment Help Microeconomics
Reference no: EM13848535

Instructions

Explain this equation: Y = Yad = C + I + G + NX.

Provide the equation for C and explain its importance.

Describe the Keynesian cross diagram and explain its use.

Describe the investment-savings (IS) curve and its characteristics.

Describe the liquidity preference-money (LM) curve and its characteristics.

Explain why equilibrium is achieved in the markets for goods and money.

Explain the IS-LM model's biggest drawback.

Reference no: EM13848535

Questions Cloud

Find power delivered to particle by the forces acting on it : A particle of mass m is moving in a circular path of constant radius r such that its centripetal acceleration ac is varying with time t as ac=k2rt2, where k is a constant. Find the power delivered to the particle by the forces acting on it.
Some additional land and build a new assisted living center : Meadow Brook Manor would like to buy some additional land and build a new assisted living center. The anticipated total cost is $20.5 million. How long does the company have to wait before expanding its operations?
Future value compute the future value : Future Value Compute the future value in year 9 of a $2,000 deposit in year 1 and another $1,500 deposit at the end of year 3 using a 10 percent interest rate. (LG5-1)
Call option contracts with strike price : You purchased four call option contracts with a strike price of $40 and an option premium of $1.25. You closed your contract on the expiration date when the stock was selling for $42.50 a share. What is your total profit or loss on your option positi..
Explain the is-lm models biggest drawback : Explain why equilibrium is achieved in the markets for goods and money.  Explain the IS-LM model's biggest drawback.
What is the value-use financial calculator : What is the value today of $4,600 per year, at a discount rate of 10 percent, if the first payment is received 6 years from today and the last payment is received 20 years from today?
With projected annual sales growth : With a projected annual sales growth of 15% projected annual earnings retention of 12%, and a cash cycle of 30 days, is there a need for external financing?
How large would the annual cash flows : A few years ago a subsidiary of Stanley Works offered to purchase another company for $54.3 million in order to diversify its business. One way to value an entire company is to find the present value of the annual cash flows generated by the company...
Disclose behavior reported by students : When do you have to disclose behavior reported by students: abuse, drug use, pregnant, hurting others, hurting self? 300 hundred words with at least one reference.

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd