Consider a closed- economy IS-LM model, where C = C(YD), I = I(Y, i), and G = G. Suppose there is an increase in autonomous consumption. Show the short run effects on output and interest rate using the three figures diagrams. To answe this question, draw a diagram that includes the following three figures: A. The goods market,

Consider a closed- economy IS-LM model, where C = C(YD), I = I(Y, i), and G = G. Suppose there is an increase in autonomous consumption. Show the short run effects on output and interest rate using the three figures diagrams. To answe this question, draw a diagram that includes the following three figures: A. The goods market,

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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