NEED MODEL DRAWN PLEASE Draw an IS-LM model in general equilibrium. Show the effect of expansionary monetary policy in the short run, and then explain what adjustmentwill happen in a classical version of the model. Did this policy accomplishanything with regards to GDP growth

NEED MODEL DRAWN PLEASE Draw an IS-LM model in general equilibrium. Show the effect of expansionary monetary policy in the short run, and then explain what adjustmentwill happen in a classical version of the model. Did this policy accomplishanything with regards to GDP growth

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

NEED MODEL DRAWN PLEASE

Draw an IS-LM model in general equilibrium. Show the effect of expansionary monetary policy in the short run, and then explain what adjustment
will happen in a classical version of the model. Did this policy accomplish
anything with regards to GDP growth

Definition Definition Policy implemented by the central bank of a country (such as the Federal Reserve in the United States) to achieve certain macroeconomic objectives. Monetary policy is a supply-side macroeconomic policy that supervises the growth rate and money supply in the economy.

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In the AS-AD model, a deficit reduction O decreases output in the short-run and the medium-run has no effect on the medium-run economy due to the neutrality of money. O crowds-in investment in the short-run and medium-run due to a decrease in interest rates. O has no effect on interest rates in the short-run.
Dual Mandate: Suppose the central bank has a dual mandate. This implies the following IS-MP-AS model: IS: Y a-b(Re-F) MP: Re-F= m(₁ - 7) + dŸ₁ tt-1+0+0 AS (a) Why does the above model represent a dual mandate? (b) Solve for the AD curve of this economy. (c) Compare the slope of the AD curve in this economy to the slope of an AD curve in an economy with a single mandate (i.e. set d= 0.). Does the slope make sense given the central bank's objectives? Explain using a graph.
In the liquidity trap O Monetary policy should contrast high inflation O The government should pursue an expansionary fiscal policy O Monetary policy is more effective because of the zero lower bound O Fiscal policy should contrast high inflation
Pls help with below homework, dont copy paste from google.
How different are approach in IS-LM model compared to classical theory which implies adjustment of interest rate and prices to satisfy IS and LM equations?
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