Factors That Cause the IS Curve to Shift 561
Factors That Cause the LM Curve to Shift 564
Changes in Equilibrium Level of the Interest Rate and Aggregate Output 566
Response to a Change in Monetary Policy 566
Response to a Change in Fiscal Policy 567
Effectiveness of Monetary Versus Fiscal Policy 568
Monetary Policy Versus Fiscal Policy: The Case of Complete Crowding Out 568
Application Targeting Money Supply Versus Interest Rates 571
ISLM Model in the Long Run 575
ISLM Model and the Aggregate Demand Curve 577
Deriving the Aggregate Demand Curve 577
Factors That Cause the Aggregate Demand Curve to Shift 578
Summary, Key Terms, Questions and Problems, and Web Exercises 580
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At least once in every person’s life comes a time when the need is great and the resources are few. It can be hard enough to make ends meet on a decent wage, but, when the times get tough and the money just is not there to meet the need, a person can easily despair.