What is the key difference between the IS-MP-PC model and the AD/AS model? O In AD/AS model, the government can not borrow O In AD/AS model, the central bank can not change the interest rate O In AD/AS model, the central bank sticks to a rule O In AD/AS model, the government can not change its expenditure
What is the key difference between the IS-MP-PC model and the AD/AS model? O In AD/AS model, the government can not borrow O In AD/AS model, the central bank can not change the interest rate O In AD/AS model, the central bank sticks to a rule O In AD/AS model, the government can not change its expenditure
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter34: The Influence Of Monetary And Fiscal Policy On Aggregate Demand
Section: Chapter Questions
Problem 4CQQ
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![What is the key difference between the IS-MP-PC model and the AD/AS model?
O In AD/AS model, the government can not borrow
In AD/AS model, the central bank can not change the interest rate
O In AD/AS model, the central bank sticks to a rule
O In AD/AS model, the government can not change its expenditure](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdfd1a49d-6e06-4a40-a8af-13a41dfd1a42%2F83bc7b2f-31c1-4163-afeb-cb67dd19b816%2Fd2j2ej_processed.jpeg&w=3840&q=75)
Transcribed Image Text:What is the key difference between the IS-MP-PC model and the AD/AS model?
O In AD/AS model, the government can not borrow
In AD/AS model, the central bank can not change the interest rate
O In AD/AS model, the central bank sticks to a rule
O In AD/AS model, the government can not change its expenditure
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