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Use the IS-LM Model to Determine the Effects of Each

question 43

Essay

Use the IS-LM model to determine the effects of each of the following on the general equilibrium values of the real wage,employment,output,the real interest rate,consumption,investment,and the price level.
(a)Tougher immigration laws reduce the working-age population.
(b)There's increased volatility in the prices of stocks and bonds.
(c)The government tries to achieve tax equity by an increase in the corporate tax rate.
(d)Increased computerization reduces stock market brokerage costs.


Definitions:

Zygomatic Arch

The bone that forms the prominence of the cheek; it is part of the zygomatic bone.

Temporomandibular Joint

The hinge joint that connects the lower jaw (mandible) to the temporal bone of the skull, facilitating mouth movements.

Lateral Collateral Ligament

A ligament on the outer side of the knee joint that provides stability by preventing excessive lateral motion of the joint.

Posterior Cruciate Ligament

A ligament in the knee that connects the femur to the tibia and helps stabilize the knee joint.

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