第7章-IS-LM模型.pptVIP

* * Topic 10 showed that an increase in G causes the IS curve to shift to the right by (?G)/(1-MPC). Higher G = higher E (planned expenditures) = higher Y ?Y = 1/(1-MPC)* ?G. This all happens at a constant level of r = IS shifts by ?Y Get partial crowding out of investment. Was complete under neoclassical model (i.e. by what G increase, I had to decrease); here only partial, since Y rises to allow G+I to be bigger * Topic 10 used the Keynesian Cross to show that a decrease in T causes the IS curve to shift to the right by (-MPC??T)/(1-MPC). Again, it is due to fact that if T is smaller = Y-