Title Complete Keynesian Model Question set.pdf ✅

Shashi Kr Shaw Assistant Professor Economics BB College, Asansol Complete Keynesian Model 1. Describe the equilibrium in the commodity market (IS) and money market (LM). Explain how these equilibria combine to form the IS-LM equilibrium. 2. Explain the determination of the interest rate and level of income in the IS-LM model. 3. Explain the determination of the price level and level of income in the complete Keynesian model. 4. Draw the IS curve and explain its slope. 5. Examine the effectiveness of fiscal policy in the IS-LM model under conditions of a steep IS curve versus a flat IS curve. 6. Draw the LM curve and explain its slope. 7. Examine how the slope of the LM curve affects the effectiveness of monetary policy. Contrast the outcomes in cases of a steep versus a flat LM curve. 8. When is monetary policy fully effective? Examine how the slopes of the IS and LM curves determine the effectiveness of monetary policy. 9. Examine the effect of a change in money supply in the complete Keynesian model when the price level is not fixed. 10. Examine the effect of a change in money supply in the IS-LM model. Use diagrams to illustrate the shift and explain the resulting changes in interest rates and income. 11. Examine the effect of a change in government expenditure in the IS-LM model. 12. Discuss the role of the labor market in the complete Keynesian system. Explain how it interacts with the commodity and money markets to determine equilibrium output. 13. Examine the impact of an increase in labor supply on the complete Keynesian model. Analyze the effects on output, employment, and the price level. 14. Compare the IS-LM model with the Classical system. 15. Explain the concept of the real balance effect in the IS-LM model. 16. Examine the effects of a increase in autonomous investment in the IS-LM model. 17. Discuss the concept of fiscal policy multiplier and monetary policy multiplier. 18. Discuss the effectiveness of Monetary policy and Fiscal policy under different supply condition?