What key policy recommendations would you make for an economy like this one that is currently operating at point A? Illustrate using the IS-LM model how the policy recommendations you provide will impact the economy. On your diagram indicate the new point that the policy takes the economy to and label this as point B

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Assume an economy is currently operating at point A and answer the following question.

Q. What key policy recommendations would you make for an economy like this one that is currently operating at point A? Illustrate using the IS-LM model how the policy recommendations you provide will impact the economy. On your diagram indicate the new point that the policy takes the economy to and label this as point B.

LM
A
ro
IS
Y
Yo
Transcribed Image Text:LM A ro IS Y Yo
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