For the development of the rest of the short run model in the next two chapters, we could just present the equation for the IS curve, t (Rt ), and omit the six equations and six unknowns that allowed us to derive the curve Why, however, do you think the underlying setup of the economy might prove u...

If we want to be able to read the newspaper its useful to know that shifts ...

For the development of the rest of the short-run model in the next two chapters, we could

Question:

For the development of the rest of the short-run model in the next two chapters, we could just present the equation for the IS curve, Ỹ t = - (Rt - ), and omit the six equations and six unknowns that allowed us to derive the curve. Why, however, do you think the underlying setup of the economy might prove useful?