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Qaagi - Book of Why

Causes

Effects

we here mean a change in the money supply ( such as an open market operationleadingto a shift in the LM curve

changes in the money supplywill causeshifts in the LM curve

Increase in money supplycausesrightward shift in LM curve

that reduction in money supplywill causea leftward shift in lm curve

changing M(passive) caused byshifts in the LM curve

simply(passive) can be ... causedShifts in LM curve

either an autonomous change in money demand(passive) are caused byShifts in the LM curve

As has been explained abovecausesa shift in the LM curve

The other factorcausesa shift in the LM curve

Home / Economics / Macro / Shift in LM curve and its Effect on Equilibrium Income Shift in LM curve and its Effect on Equilibrium Income Changes in monetary policy variablesleadto shift in LM curve

This increase in priceswill leadto a shift in the LM curve

the Great Depression(passive) was caused bythe Great Depression

the Depression.2 percenttriggeredthe Depression.2 percent

a recessionto createa recession

a decline in price levelwill causea decline in price level

in a higher equilibrium real interest rate and lower real output levelwill resultin a higher equilibrium real interest rate and lower real output level

an even bigger shift in the IS curve ... causing rates to move in a “ perverse ” mannercan causean even bigger shift in the IS curve ... causing rates to move in a “ perverse ” manner

to higher incomeleadsto higher income

an increase in price levelto causean increase in price level

12 Shift in the Aggregate Demand Curve(passive) Caused by12 Shift in the Aggregate Demand Curve

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