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What will make the IS curve flatter?

Updated: 12/14/2022
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Q: What will make the IS curve flatter?
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Why is the ordinary demand curve flatter than a compensated demand curve if the good is a normal good but the reverse is the case if the good is inferior?

because the ordinary demand curve ignores the income effect of price changes.also since the compensated demand curve is less inelastic than an ordinary demand curve.


What is the relationship between net exports and GDP?

The relationship between ne exposts and GDP makes the slope of the ae curve flatter than it would be otherwise


Give details that why an Indifference Curve is not concave?

Because of diminishing marginal rate of substitution, which is the principle that the more of one good a consumer has, the more they are willing to give up for an additional unit of the other good. Therefore the indifference curve must get flatter as we go along it


Do both monetary policy and fiscal policy shift the aggregate demand curve?

Yes. An expansionary fiscal policy, or more optimistic growth expectations in the private sector will shift the aggregate demand (AD) curve upwards. The position of the AD curve is also affected by the central bank's inflation target, if the target falls, the AD curve will shift downwards. Monetary policy influences the slope of the AD curve as well as the position. If the central bank put strong emphasis on fighting inflation and little emphasis on stabilizing output, the AD curve will be flatter. The other way around will yield the opposite result.


Why is long run average cost curve known as the planning curve?

The long run average cost curve will help the company plan for product differentiation. With knowledge of a particular cost curve, the company can plan complement products to make up for deficits in profit margins.

Related questions

Why is the ordinary demand curve flatter than a compensated demand curve if the good is a normal good but the reverse is the case if the good is inferior?

because the ordinary demand curve ignores the income effect of price changes.also since the compensated demand curve is less inelastic than an ordinary demand curve.


What is the effect of changing the number of impeller blades?

Normally, by increasing number of vanes, curve shape becomes flatter and flow increases


What is the relationship between net exports and GDP?

The relationship between ne exposts and GDP makes the slope of the ae curve flatter than it would be otherwise


Can you make a bullet curve in the air?

No. A cross wind will cause it to curve slightly on the horizontal plane and gravity will make it curve vertically, but you cannot MAKE it curve unless you possess powers of telekinesis.


What kind of curve does a projectile make?

Parabolic curve


How to draw a butt?

you make one curve. then you make another curve. presto? you have a butt.


Why is it easier to break an egg at the flat side rather than at the pointed side?

because the curve, like an arch in a bridge, is sort of self supporting. the flatter it is the easier it is to break.


Why would a girl flatter another girl?

so you can watch them make out


Give details that why an Indifference Curve is not concave?

Because of diminishing marginal rate of substitution, which is the principle that the more of one good a consumer has, the more they are willing to give up for an additional unit of the other good. Therefore the indifference curve must get flatter as we go along it


When you push the tuning slide in on your trombone does it make the note sharper or flatter?

Sharper!


How do you make your stomach flatter in one hour?

Not possible... do crunches the entire hour?


What angle does the letter you make?

It does not. It has a smooth curve. That is called an arc.