By the end of this chapter, students should be able to: Explain this equation: Y = Y ad = C + I + G + NX. Provide the equation for C and explain its importance. Describe the Keynesian cross diagram an...By the end of this chapter, students should be able to: Explain this equation: Y = Y ad = C + I + G + NX. Provide the equation for C and explain its importance. Describe the Keynesian cross diagram and explain its use. Describe the investment-savings (IS) curve and its characteristics. Describe the liquidity preference–money (LM) curve and its characteristics. Explain why equilibrium is achieved in the markets for goods and money. Explain the IS-LM model’s biggest drawback.
chapter objectives By the end of this chapter, students should be able to: Explain this equation: Y = Y ad = C + I + G + NX. Provide the equation for C and explain its importance. Describe the Keynesi...chapter objectives By the end of this chapter, students should be able to: Explain this equation: Y = Y ad = C + I + G + NX. Provide the equation for C and explain its importance. Describe the Keynesian cross diagram and explain its use. Describe the investment-savings (IS) curve and its characteristics. Describe the liquidity preference–money (LM) curve and its characteristics. Explain why equilibrium is achieved in the markets for goods and money. Explain the IS-LM model’s biggest drawback.
