#### You've reached the end of your free preview.

Want to read all 3 pages?

**Unformatted text preview: **the first (only LM), second (IS-LM) and third multiplier (AD-AS) of the increase of money supply on Y, dY/dm = ?, and demonstrate these multipliers in the graphs. (3) Now, assume that we are in the liquidity trap. Demonstrate the graphs and calculate dY/dm again (4) How do you justify unconventional monetary policy such as quantitative eashing in this case? Show the change in equilibria in the IS-LM and AD-AS graph...

View
Full Document

- Fall '17