Question

One policy response to the u.s. economic slowdown of 2001 was tax cuts. this policy response can be represented in the is–lm model by shifting the ______ curve to the ______.

Answer 1

Policy response can be signified in the IS-LM model by instable the IS curve to the right. The IS-LM model is a viewpoint for a macroeconomic ideal that displays how the market for economic goods interrelates with the loanable assets market or money market and it is signified as a chart in which the IS and LM curve interconnect to display the short-run.