Use the is-lm ad-as model to illustrate the short-run and, Business Economics

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Use the is-lm ad-as model to illustrate the short-run and

a) Use the IS-LM, AD-AS model to illustrate the short-run and long-run effects of an unexpected decrease in the money supply. [Assume that the economy moves immediately to the new intersection of the IS & LM curves.]

b) Repeat part a assuming that the decrease in the money supply is expected and expectations are rational

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Business Economics: Use the is-lm ad-as model to illustrate the short-run and

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Business Economics: Use the is-lm ad-as model to illustrate the short-run and

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