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Smart Reasoning:

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Qaagi - Book of Why

Causes

Effects

five factorscan causethe is curve to shift

the IS and LM curves to shift Factorscausethe IS curve to shift

factors like increased government spending or private investment(passive) caused bya shift in the IS curve

any change in government fiscal policy ( spending , taxes , or transfer paymentswill causethe IS curve to shift

A movement along the IS curvewill necessarily causea shift in the IS curve

$ a$ ... a parametercausesthe IS curve to shift up

Any other change in the parameters of the short - run modelcausesthe IS curve to shift

any change in any these variablewill causeshift in the IS curve

an upward shift in AEwould causeshifts in the IS curve

r. Thiscausesa shift in the IS curve

Only fiscal policy changes ( government spending , tax , transfer paymentscausethe IS curve to shift

Changes in net exports arising from a change in interest ratescausesa shift in the IS curve

s net exportcausethe IS curve to shift up

A change in one of the components of aggregate expenditurecausesthe IS curve to shift

_ _ and a decrease in the foreign real interest ratewould causethe IS curve to shift

Any change in the above variablescan causea shift in the IS curve

changes in demand for net exportscausethe IS curve to shift

a change in autonomous spending A as a result ofwill causea shift in IS curve

4will causea shift in IS curve

the TriggersCan CauseShift in Is Curve

an increase in foreign outputwould causethe IS curve to shift

bank moneycausesthe IS curve to shift

shift in the LM curve ... the Pigou effectcausesshift in the IS curve

a movement along the other curve to new equilibrium point 3.to a new equilibriumcausesa movement along the other curve to new equilibrium point 3.to a new equilibrium

a movement along and equilibrium quantity increases toocausesa movement along and equilibrium quantity increases too

no problems that appear latercausesno problems that appear later

a decline in price levelwill causea decline in price level

output to rise , and the increase in the money supply caused output to rise furthercausedoutput to rise , and the increase in the money supply caused output to rise further

to another great depressionwill leadto another great depression

the additional demand(passive) created bythe additional demand

as a result of the increased inflationary expectations resulting from the easy moneycausedas a result of the increased inflationary expectations resulting from the easy money

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