Question: Consider the IS-LM model in the graph below. Initial equilibrium is at point X, then consumer confidence increases. Where will the economy end up

Consider the IS-LM model in the graph below. Initial equilibrium is at

Consider the IS-LM model in the graph below. Initial equilibrium is at point X, then consumer confidence increases. Where will the economy end up considering only the affects in the market directly impacted by the shock (before any secondary effects)? TE rx -a Ya Yx E YE Y 8 Y

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