Joeyd5625 Joeyd5625

01-05-2024
Business

Answered

Consider an economy with output equal to the natural level of output. Now by using the IS-LM-PC model describe the impact of a fiscal expansion in the short run (SR) and medium run (MR).
More specifically, describe how the 3 curves move in the SR and MR and the impact of the fiscal policy on output, interest rate and inflation in the SR and MR.

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