The bowed-outward shape of the production possibilities frontier can be explained by the fact that.
1. Consider the IS-LM model. a) Develop the IS curve using the Keynesian Cross diagram in tandem with investment demand. b) How does an increase in government spending1. Consider the IS-LM model.
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Explain the determinants of consumption (C) and investment (I) in pure Keynesian analysis. Support your arguments with reasons and graphs.
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Solved The shape of Ireland's production possibilities