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Explain the is-lm models biggest drawback

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Instructions

Explain this equation: Y = Yad = 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.

Reference no: EM13848535

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