Use the IS-LM-FE model to determine both the short-run and long-run effects when the economy is subject to the following
Posted: Wed Jul 06, 2022 6:33 pm
Use the IS-LM-FE model to determine both the short-run andlong-run effects when the economy is subject to the followingshocks. Briefly explain with words and illustrate with graphs.
A. To fight the record high inflation rate in the last30 years, the Federal Reserve increases the overnight interestrate sharply.
B. Immigration has dropped significantly due to tighterimmigration laws and restrictions.
A. To fight the record high inflation rate in the last30 years, the Federal Reserve increases the overnight interestrate sharply.
B. Immigration has dropped significantly due to tighterimmigration laws and restrictions.