Future marginal productivity of capital increases- Microeconomics
For each of the following changes, describe which equilibrium curve (IS, LM or FE) is shifted and in which direction?
Expected inflation increases.
The future marginal productivity of capital increases.
Labor supply decreases.
Expected future income declines
There’s a temporary beneficial supply shock.
The nominal interest rate on money rises.
Chapter 7 – Macroeconomics Eighth Edition (Abel, Bernanke, Croushore)
