Question

In the SI-LM model,explain why the economy always moves towards the equilibrium point​

Answer 1

Answer:

Isotopes are atoms of the same element with different numbers of neutrons. Because they contain different numbers of neutrons, isotopes have different atomic masses. The average atomic mass of an element is calculated by taking the weighted average mass of the element's naturally occurring isotopes.

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Answer 2

Answer:

The LM curve slopes upward because higher levels of income (GDP) induce increased demand to hold money balances for transactions, which requires a higher interest rate to keep money supply and liquidity demand in equilibrium.