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general rule for if it moves IS curve
if it changes demand at every interest rate then IS curve shifts.
what causes movement along IS curve
changes in interest rate
what happens to IS curve as a increases
IS curve shifts right. this is because people want to consume more when they have more
what happens to IS curve as expected Y increases
IS curve shifts right
what happens to IS curve as expected inflation increases
IS shifts right. this is because real interest rate (r) is lower so borrowing becomes cheaper in real terms. more people borrow so C+I increases shifting IS curve right.
what happens to IS curve as K increases
normally IS curve shifts right because firms have more ability to invest, however a higher capital stock reduces need for investment so it depends
what happens to IS curve as i increases
IS curve does not shift. simply movement along the curve
what happens to LM curve when M increases
LM shifts down because since M/P increases, i must fall looking at equation
what happens to LM curve when P increases
LM shifts up because since M/P decreases, i must increase looking at equation
general rule for what shifts LM curve
only things that change money market equilibrium at every level of income will shift LM curve
what will happen to LM with a change in income/output Y
movement along the LM curve
what will affect the Phillips curve
things that affect inflation directly independent of ou9tput, for example cost push shocks, change in inflation expectations
what causes shifts along the phillips curve
change in output gap