Instructions
Explain this equation: Y = Yad = C + I + G + NX.
Provide the equation for C and explain its importance.
Describe the Keynesian cross diagram and explain its use.
Describe the investment-savings (IS) curve and its characteristics.
Describe the liquidity preference-money (LM) curve and its characteristics.
Explain why equilibrium is achieved in the markets for goods and money.
Explain the IS-LM model's biggest drawback.