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MACRO ECONOMIC BALANCE IS-LM CURVE MODEL. First, draw the economic balance in the goods market...

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MACRO ECONOMIC BALANCE IS-LM CURVE MODEL. First, draw the economic balance in the goods market and the money market a. Give an analysis accompanied by a picture of what will happen to the interest rate and Y balance if the government implements an expansionary fiscal policy (eg G increases)? b. Provide analysis with pictures, what should the central bank do if it responds to the fiscal policy mentioned above by issuing monetary policy aimed at maintaining interest rates? What is the impact on the balance in the goods market and the money market (IS)

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