(Solved by Humans)-According to the Keynesian IS-LM model, what is the effect of
Question
According to the Keynesian IS-LM model, what is the effect of each of the following on output, the
real interest rate, employment, and the price level? Distinguish between the short run and the long
run.
(a) Expected inflation rises.
(b) Wealth increases.
(c) Labor supply decreases due to a change in demographics.
(d) The future marginal product of capital decreases.
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