What does the is curve represent

Assignment Help Business Economics

Reference no: EM131112353

Consider the IS-LM model.

a) Develop the IS curve using the Keynesian Cross diagram in tandem with investment demand.

b) How does an increase in government spending affect the position of the IS curve?

c) How does an increase in the real interest rate affect the position of the IS curve?

d) What does the IS curve represent?

e) How does an increase in government spending affect the position of the LM curve?

f) How does an increase in the money supply affect the position of the Lm curve?

g) What does the Lm curve represent?

h) What does equilibrium in the IS-Lm model represent?

Reference no: EM131112353

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