Based on our understanding of the IS-LM model that takes into account dynamics,we know that a reduction in government spending will cause

Question

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In the IS-LM model, a reduction in government spending shifts the IS curve to the left, leading to a gradual reduction in both output (Y) and the interest rate (i) as the economy adjusts to the new equilibrium. This process is not immediate due to the dynamics of economic adjustments and the interactions between the goods and money markets.

Based on Our Understanding of the IS-LM Model That Takes