Hi,

I need help in drawing a graph based on this question. I already provided the answer.

PART B 1) Draw a saving-investment diagram to show how each of the following changes shifts the IS curve. (a) Future income rises. IS shifts up and to the right (b) The future marginal productivity of capital increases. - IS shifts up and to the right (c) Government purchases decrease temporarily. - IS shifts down and to the left (d) The effective corporate tax rate increases. - IS shifts down and to the left4) For each of the following changes, which equilibrium curve (IS, LM, or FE) is shifted? Draw the change in the underlying demand or supply curves (for example, money demand and supply for the LM curve) and show how the equilibrium curve changes. (a) Expected inflation increases. - LM shifts down and to the right (b) The future marginal productivity of capital increases. - IS shifts up and to the right (c) Labor supply decreases. - FE shifts left (d) Future income declines. - IS shifts down and to the left (e) There's a temporary beneficial supply shock. - FE shifts right (f) The nominal interest rate on money rises. - LM shifts up and to the left