(A)Draw a Figure,using the Keynesian IS-LM Framework,of an Economy in Recession

question 92

Essay

(a)Draw a figure,using the Keynesian IS-LM framework,of an economy in recession.
(b)If the Fed's goal is to move output to its full-employment level,what should it do with monetary policy? What will happen to the real interest rate? What is the effect on the price level? Show the result in your diagram.
(c)Suppose the Fed decides to keep the money supply unchanged.How could the government use fiscal policy to move the economy to full employment? Show the result in your diagram.
(d)How does the real interest rate differ between parts (b)and (c)?

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Definitions:

Non-targeted Species

Organisms that are unintentionally affected by human activities or control measures aimed at other species.

Human Activities

Actions by humans that affect the environment, economy, and society, ranging from agriculture and industry to recreation and urban development.

Large Catches

Large catches refer to the significant quantities of fish or other marine organisms captured at once by fishing operations, which can impact marine populations and ecosystems.

Conservationist

An individual or a group actively involved in the protection and preservation of nature and wildlife, often advocating for sustainable practices to protect the environment.