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    Macroeconomics Study Set 60
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    Exam 12: Aggregate Demand Ii: Applying the Islm Model
  5. Question
    Exhibit: IS-LM to Aggregate Demand Based on the Graph
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Exhibit: IS-LM to Aggregate Demand Based on the Graph

Question 11

Question 11

Multiple Choice

Exhibit: IS-LM to Aggregate Demand Exhibit: IS-LM to Aggregate Demand   Based on the graph, which is the correct ordering of the price levels and money supplies? A) P<sub>1</sub> > P<sub>2</sub> and M<sub>1</sub> > M<sub>2</sub> B) P<sub>1</sub> > P<sub>2</sub> and M<sub>1</sub> < M<sub>2</sub> C) P<sub>1</sub> < P<sub>2</sub> and M<sub>1</sub> > M<sub>2</sub> D) P<sub>1</sub> < P<sub>2</sub> and M<sub>1</sub> < M<sub>2</sub> Based on the graph, which is the correct ordering of the price levels and money supplies?


A) P1 > P2 and M1 > M2
B) P1 > P2 and M1 < M2
C) P1 < P2 and M1 > M2
D) P1 < P2 and M1 < M2

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