Sci-fi
A mysterious virus originating from a basement in Ohio starts rapidly spreading globally, turning people into zombies. Survival becomes everyone’s primary concern as human labor is disrupted and entire industries collapse. What would the net effect on r and Y be in the global economy? How would the IS and LM curves shift, if at all?
What is Y decreases?
What is r decreases?
What is IS shifts left?
What is LM shifts right?
Aliens come down to Earth and offer a device that allows the instant teleportation of physical goods from one place to the next. What would the effect of r and Y on the global economy be? How would the IS and LM curves shift, if at all?
What is Y would increase due to the increase in consumption and investment following a removal of all transportation costs?
What is r would increase due to a higher demand for money as people buy and sell more goods?
What is the IS curve shifts right and the LM curve shifts left?
China and the U.S. battle over the rights to mine the rare-earth minerals of the asteroid Psyche, ultimately sparking a skirmish between two U.S. and Chinese spacecraft. Immediately, the U.S. declares war on China and begins the war effort. What is the effect on r and Y in the U.S. economy? How do the IS and LM curves shift, if at all.
What is r increases due to higher demand for liquidation and the Fed printing money?
What is Y and IS ambiguous due to the increase in government spending for funding the war but a decrease in investment and exports?
What is LM curve shifts left?