Using IS curve, explain what happens to the macro economy in the
short run in each of the following circumstances. Please use math
and figure separately to explain the answer for each case.
a.There is deep recession in Europe.
b.Housing values rise above their trend.
c.Mortgage lenders raise interest rates.
d.The government decides to close 20 percent of its military bases
around the country.
e.The long-run interest rate rises.
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