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The IS Curve Performs the Function of Illustrating the Relationship

Question 32

Multiple Choice

The IS curve performs the function of illustrating the relationship between:


A) lower interest rates and higher real GDP and thus more positive output gaps.
B) higher interest rates and higher real GDP and thus more negative output gaps.
C) lower prices in the economy and higher real GDP.
D) lower incomes and lower aggregate expenditures in the economy.

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