Explain what the IS curve represents. Understand the relationship between the production model and the demand for invest

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answerhappygod
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Explain what the IS curve represents. Understand the relationship between the production model and the demand for invest

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Explain what the IS curve represents. Understand the
relationship between the production model and
the demand for investment. For example, why does investment demand
depend on output and on the real
interest rate? What are demand shocks – for example, how does a
fiscal expansion, increase in import
demand, or fall in consumer confidence affect the IS
relationship?
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