Explain what effect an increase in future expected output will have on the IS curve and LM curve in the current period.
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Q11: Suppose individuals now believe that there will
Q12: Explain why the new IS curve that
Q13: Which of the following will not cause
Q14: Explain what effect a reduction in future
Q15: Suppose there is a reduction in the
Q17: The IS curve shifts to the left
Q18: Suppose there is a reduction in expected
Q19: Suppose there is a fiscal expansion in
Q20: The IS curve shifts to the right
Q21: Rational expectations assumes that individuals
A)can accurately predict
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