How does each of the following factors affect the IS curve? Start your argument from the diagram

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How does each of the following factors affect the IS curve? Start your argument from the diagram of Id-Sd and show how the associated change will affect IS curve.

a. An increase in government purchases (when it does not affect the productivity).

b. An increase in taxes (when Ricardian equivalence does not hold).

c. An increase in national income.

d. An increase in marginal productivity of capital.


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Contemporary Marketing

ISBN: 978-0324582031

14th Edition

Authors: Louis E Boone, David L Kurtz

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