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Unformatted text preview: 1. Use pictures and words to derive the IS and LM curves. Show the equilibrium point that simultaneously satisfies equilibrium in the goods and money markets. 2. Begin with equilibrium in the goods and money markets. Using the ISLM model explain and show what happens if: a. the government increases spending b. the Fed increases the money supply...
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This note was uploaded on 09/07/2010 for the course ECON 301 taught by Professor Staff during the Spring '08 term at University of Missouri-Kansas City .
- Spring '08