Why does the government spend money surveying consumers and firms on their current level of confidence in the economy?
How might the Federal Reserve react to a sudden drop in consumer confidence? Use IS-LM analysis (DRAW IT) and explain it to support your answer.© BrainMass Inc. brainmass.com April 3, 2020, 3:23 pm ad1c9bdddf
The IS curve represents the product market equilibrium condition.
and the LM curve represents the money market equilibrium condition
Current level of consumer confidence & firms confidence have a great impact on the IS curve that is in the product market equilibrium. If there is a fall in the level of ...
This job highlights government spending.