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what will happen to the position of the aggregate demand curves if the money supply is reduced when government spending increases? Demonstrate your answer with IS-LM diagram

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 2SQP

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what will happen to the position of the aggregate demand curves if the money supply is
reduced when government spending increases? Demonstrate your answer with IS-LM
diagram

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Step 1: Define IS-LM Model

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