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  • Problem Set 5 Problems For Chapter 5

    Transféré par

    Christian Josué Recinos
    15 vues1 page
    This document outlines two problems from an economics textbook chapter asking the student to use an IS-LM diagram to suggest policy mixes that achieve specific objectives: (1) Increase output (Y) while keeping interest rates (i) constant, and (2) Decrease the government budget deficit while keeping output (Y) constant. The student must justify their answers using the diagram and explaining their reasoning.

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    Problem Set 5

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    This document outlines two problems from an economics textbook chapter asking the student to use an IS-LM diagram to suggest policy mixes that achieve specific objectives: (1) Increase output (Y) while keeping interest rates (i) constant, and (2) Decrease the government budget deficit while keeping output (Y) constant. The student must justify their answers using the diagram and explaining their reasoning.

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    © All Rights Reserved
    Téléchargez comme DOCX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    15 vues1 page

    Problem Set 5 Problems For Chapter 5

    Transféré par

    Christian Josué Recinos
    This document outlines two problems from an economics textbook chapter asking the student to use an IS-LM diagram to suggest policy mixes that achieve specific objectives: (1) Increase output (Y) while keeping interest rates (i) constant, and (2) Decrease the government budget deficit while keeping output (Y) constant. The student must justify their answers using the diagram and explaining their reasoning.

    Droits d'auteur :

    © All Rights Reserved
    Téléchargez comme DOCX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    sur 1

    PROBLEM SET 5

    Problems for Chapter 5


    1.

    For each part below, start with and IS-LM diagram drawn like that below.
    i

    LM
    A
    i1

    IS
    Y1

    Suggest a mix of monetary and fiscal policy that will achieve the following objectives.
    Justify your answers by using the diagram and explain your reasoning.
    a.
    b.

    Increase Y while keeping I constant at i1.


    Decrease the government budget deficit while keeping Y constant at
    Y1.

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