Question

In: Economics

1. Explain why the LM curve is positively sloped 2. Explain how it would shift if...

1. Explain why the LM curve is positively sloped

2. Explain how it would shift if there were a decrease in the price level

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

Write down the definition of "supply curve". Is the supply curve positively sloped or negatively sloped?...
Write down the definition of "supply curve". Is the supply curve positively sloped or negatively sloped? Explain why by pointing out the foundamental economic assumption that determines the slope of the supply curve.
Write down the definition of "supply curve". Is the supply curve positively sloped or negatively sloped?...
Write down the definition of "supply curve". Is the supply curve positively sloped or negatively sloped? Explain why by pointing out the foundamental economic assumption that determines the slope of the supply curve.
4. Explain why the aggregate supply curve is positively sloped during the short run and vertical...
4. Explain why the aggregate supply curve is positively sloped during the short run and vertical in the long run. 5. List some examples of factors that will shift the aggregate demand curve. 6. List some examples of factors that will shift the long-run aggregate supply curve.
Describe the two complementary explanations for why the aggregate supply curve is positively sloped.
Describe the two complementary explanations for why the aggregate supply curve is positively sloped.
4. The indifference curve between a good and garbage is positively sloped. True or false? Explain.
4. The indifference curve between a good and garbage is positively sloped. True or false? Explain.
1.A change in which of the following would cause the LM curve to shift? To rotate?...
1.A change in which of the following would cause the LM curve to shift? To rotate? To both shift and rotate? Which do not affect the position or slope of the LM curve? (a)nominal money supply (b)responsiveness of the demand for money to the interest rate (c)responsiveness of the demand for money to income (d)business and consumer confidence (e)interest rate (r) (f)price level (P)
Define LM Curve and shoe how it derived? Explain in which direction and why LM curve...
Define LM Curve and shoe how it derived? Explain in which direction and why LM curve shifts when there is: a. An increase in money supply b. A decrease in money supply.
(a) Explain why LM curve shift towards the right if demand for money decreases (say due...
(a) Explain why LM curve shift towards the right if demand for money decreases (say due to decrease in uncertainty). (b)   Every point above the LM curve imply excess supply of money and income will increase to bring the money market back into equilibrium. True/false? Explain your answer.
2 LM model: thought experiment: Use money market equilibrium to graphically show how LM curve shift...
2 LM model: thought experiment: Use money market equilibrium to graphically show how LM curve shift in following cases: (1) the Fed decide to sell government bonds this year; (2) the public’s inflation expection rises because one of the Fed officials told the media that the Fed will increase the money supply significantly next year in 2019. (3) real GDP increases because technology improves.
1.The LM curve can shift to the right if there is an increase in the supply...
1.The LM curve can shift to the right if there is an increase in the supply of money or a fall in the price level. In which case does this represent a movement along the aggregate demand curve and in which case does this represent a shift of the aggregate demand curve? Use the IS-LM diagram and Aggregate demand curve in your explanation. 2. Examine how changes in monetary policy and changes in fiscal policy affect the economy in the...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT