For Simplicity,the IS Model Assumes That Neither Net Exports nor Net

question 62

Essay

For simplicity,the IS model assumes that neither net exports nor net taxes vary with income.A more realistic (and complicated)model would drop such assumptions.How would the behavior of the IS curve differ in the more realistic model?

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Definitions:

Expert

Someone with specialized skills and knowledge developed around a particular activity or area of specific interest.

Strategic

Involving or characterized by high-level planning and execution aimed at achieving specific goals or outcomes.

Flexible

Capable of bending easily without breaking or able to be easily modified to respond to altered circumstances.

Cognitive Artifacts

Intellectual tools passed down from generation to generation that may assist in learning within societies.