9-10) Portray an initial equilibrium denoted by the subscript 0, in the savings and Investment space,...

 

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9-10) Portray an initial equilibrium denoted by the subscript 0, in the savings and Investment space, the Money Market, the IS-LM space, and the AD space, and show how an increase in the price level which increases real output would affect these. Be sure to label all shift variables. Assume MPS - MPI. Goods or Savings-Investment Market IS-LM Money Market 1.S M AD Y 9-10) Portray an initial equilibrium denoted by the subscript 0, in the savings and Investment space, the Money Market, the IS-LM space, and the AD space, and show how an increase in the price level which increases real output would affect these. Be sure to label all shift variables. Assume MPS - MPI. Goods or Savings-Investment Market IS-LM Money Market 1.S M AD Y

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lets go through an example of how an increase in the price level would affect the various markets an... View the full answer