Answered: When the economy is out of general…

When the economy is out of general equilibrium, which of the three curves (FE, IS, LM) shifts to return the economy to general equilibrium? What causes this curve to shift?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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When the economy is out of general equilibrium, which of the three curves (FE, IS, LM) shifts to return the economy to general equilibrium? What causes this curve to shift?

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