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IS/LM/BP model, Flexible exchange rate and a fall in GDP in the rest of the world.

Using the IS/LM/BP model, demonstrate the effect of each of the following changes. Assume that the economy has an upward sloping BP curve that is flatter than its LM curve and a flexible exchange rate. Illustrate a fall in GDP in the rest of the world.

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M921705

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