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Topic 9: IS-LM Model Analysis by sqhaa is a document available to read on EtoBox.

This document provides a solution sketch for an economics problem involving the IS-LM, AD-AS, and labor market models. It finds the following equilibrium values: 1) An initial equilibrium with Y=100, C=80, r=5%, I=20, P=2, N=10, M=400. 2) With an unanticipated money supply increase to M=700, the equilibrium price level rises to P=70 and output increases to Y=600. 3) If the money supply increase to M=700 is anticipated, the equilibrium price level also rises to P=105, but output remains at full employme

Author

sqhaa

Language

EN