The relavie effect on is lm model presentation.pptx
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The document presents a topic on the relative effectiveness of monetary and fiscal policy. It discusses how monetary policy tools like increasing or decreasing money supply can shift the LM curve and thereby impact output and income by affecting interest rates. Fiscal policy tools like increasing or decreasing government purchases or taxes can shift the IS curve and similarly impact output and income through changes in interest rates. The document outlines the process and results of analyzing these policy variables but does not provide details on the actual analysis or conclusions.
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- 1. Welcome to my Presentation Presented By: Misbah Uddin Department of Economics University of Barishal Roll: 21 ECO 068 Session: 2021-22 (AD: 2020-21)
- 2. Topic The Relative Effectiveness of Monetary and Fiscal Policy
- 3. Effects of Monetary and Fiscal policy Variables Table 7-1 . As the table shows, both monetary and fiscal policy instruments can affect the level of income. In this section, we examine the relative effectiveness of the two types of policy actions. By effectiveness we mean the size of the effect on income of a given change in the policy variable. The effectiveness of each type of policy (monetary and fiscal) will be shown to depend on the slopes of the IS and LM schedules, which in turn are determined by certain behavioral parameters of our model.
- 4. . When money supply increase LM curve are shift downward and interest rate falling and output and income to rise. And when money supply decrease LM curve shift upward and interest rate are increasing and income also decrease. An increase in government purchase IS curve are shifts rightward causing output and income to rise and interest rate also increases. And decrease government purchase IS curve are downward causing output and income decrease and also interest rate decreases. When tax increases IS curve shift downward, output and income are decreases and also interest rate decreases. When tax decreases IS curve shift upward and output and income are increases and also interest rate increases.
- 5. Process Lorem ipsum dolor sit amet, consectetur adipisicing elit. Donec quis erat et quam iaculis faucibus at sit amet nibh. Vestibulum dignissim lectus in ligula rhoncus, et bibendum risus dictum. Lorem ipsum dolor sit amet, consectetur adipisicing elit. Donec quis erat et quam iaculis faucibus at sit amet nibh. Lorem ipsum dolor sit amet, consectetur adipisicing elit. Donec quis erat et quam iaculis faucibus at sit amet nibh. Lorem ipsum dolor sit amet, consectetur adipisicing elit. Donec quis erat et quam iaculis faucibus at sit amet nibh. Vestibulum dignissim lectus in ligula rhoncus, et bibendum risus dictum.
- 6. Result Result 1 Result 2 Lorem ipsum dolor sit amet, consectetur adipisicing elit. Donec quis erat et quam iaculis faucibus at sit amet nibh. Vestibulum dignissim lectus in ligula rhoncus, et bibendum risus dictum. Lorem ipsum dolor sit amet, consectetur adipisicing elit. Donec quis erat et quam iaculis faucibus at sit amet nibh. Vestibulum dignissim lectus in ligula rhoncus, et bibendum risus dictum.
- 7. Conclusion Lorem ipsum dolor sit amet, consectetur adipisicing elit. Donec quis erat et quam iaculis faucibus at sit amet nibh. Vestibulum dignissim lectus in ligula rhoncus, et bibendum risus dictum. Pellentesque condimemtum arcu id dapibus tempor. Pellentesque venenatis nec magna nec finibus.