Economics · Economics
What does the Hicks-Hansen analysis (IS-LM model) primarily illustrate?
- 1The simultaneous equilibrium in the goods (IS) and money (LM) markets.✓
- 2The separate equilibrium in the goods and money markets.
- 3Equilibrium only in the goods market.
- 4Equilibrium only in the money market.
Correct answer
The simultaneous equilibrium in the goods (IS) and money (LM) markets.
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