Answered: Draw an IS-LM model in general…

Draw an IS-LM model in general equilibrium. Show the effect of anincrease in marginal product of labor (positive productivity shock.) Showboth short run and long run equilibrium and effects..

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 5P

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Draw an IS-LM model in general equilibrium. Show the effect of an
increase in marginal product of labor (positive productivity shock.) Show
both short run and long run equilibrium and effects..

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