For Each of the Following Changes,which Equilibrium Curve (IS,LM,or FE)is

question 34

Essay

For each of the following changes,which equilibrium curve (IS,LM,or FE)is shifted? Draw the change in the underlying demand or supply curves (for example,money demand and supply for the LM curve)and show how the equilibrium curve changes.
(a)Expected inflation increases.
(b)The future marginal productivity of capital increases.
(c)Labor supply decreases.
(d)Future income declines.
(e)There's a temporary beneficial supply shock.
(f)The nominal interest rate on money rises.

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Definitions:

Operant Conditioning

A method of learning that uses rewards and punishments to influence behavior, introduced by B.F. Skinner, emphasizing the role of reinforcement and consequences.

Consequences Of Response

The outcomes or results that follow from the actions or reactions of an individual or system.

Token Economy

A behavioral therapy method where desirable behaviors are reinforced with tokens that can be exchanged for rewards.

Old Behavior

Pre-established patterns of action that are familiar to an individual but may no longer be effective or desirable.