Share
Explore BrainMass

move along the IS curve and/or which represent a shift of the IS curve

Explain which of these changes represent a move along the IS curve and/or which represent a shift of the IS curve and why.

PLEASE DO NOT ANSWER UNLESS YOU THOROUGHLY UNDERSTAND IS CURVES

(a) Stock market boom boosts consumption and investment
(b) Government cuts taxes by $50 billion
(c) Government passes $50 billion public works bill and pays for it with a $50 billion tax increase
(d) Fed boosts interest rate from 5% to 6%
(e) Tax receipts fall $30 billion as economy plunges into recession
(f) Value of the dollar rises 10%, cutting net exports by $40 billion
(g) Net exports rise $20 billion as Asian economy recovers
(h) Rise in interest rates diminishes housing starts
(j) Mortgage interest is no longer deductible, so housing starts decline

Solution Summary

Determine which show a move along the IS curve and/or which represent a shift of the IS curve.

$2.19