What three parts of the economy are represented in the IS-MP model?
What will be an ideal response?
The IS curve, which represents equilibrium in the market for goods and services. The MP curve, which represents Federal Reserve monetary policy. The Phillips curve, which represents the short-run relationship between the output gap and the inflation rate.
Economics
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If you use $500 of currency to make a deposit in a saving deposit
A) M1 decreases, but M2 is unchanged. B) M1 decreases and M2 increases. C) M1 is unchanged, but M2 increases. D) M1 and M2 both increase.
Economics
When the exchange rises, then the
A) AD curve shifts rightward. B) AD curve shifts leftward. C) LAS curve shifts rightward. D) LAS curve shifts leftward.
Economics