1.McDonalds has many targets, almost everyone or every group that comes to mind.
They target kids with the use of a happy meal and a play place in the franchise. I
think it is very hard to contain McDonalds to one main target because
In Chapter 10 we begin studying economic fluctuations and,
more generally, the shortrun behavior of the economy. It is
pointed out in the text that growth of real GDP averages about 3
percent per year, but there are significant deviations from this
Answers to ISLM Practice Problem
Here is the practice problem from November 6:
Find the equilibrium values of Y, r, T, C, I, and L.
The equation of the IS curve is
This equation simplifies to
The equation of the LM curve is
The IS Curve
The IS curve is one of the two main components of the ISLM
model, which is the focus of Chapters 10 and 11. The other
main component is the LM curve. The ISLM model turns out
to be the foundation of the AD curve.
Well start with the IS curve.