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Answer to Question #219767 in Macroeconomics for jordan
Question #219767
Explain endogenous and exogenous variables in the IS-LM model as well as the labour markets, derive the AD-AS model.
Expert's answer
IS-LM
Exogenous variables are determined by outside model
Endogenous-interest rates
Exogenous-liquidity, investment and consumption
Labour market
Exogenous- employment rate
Endogenous-price and quantity
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