Multiple Choice
After a temporary adverse supply shock hits the economy,general equilibrium is restored by
A) a downward shift of the IS curve.
B) a shift to the left of the FE line.
C) an upward shift of the LM curve.
D) a downward shift of the LM curve.
Correct Answer:

Verified
Correct Answer:
Verified
Q27: The LM curve shifts up when<br>A)price level
Q28: The Bank of Canada has announced that
Q29: Describe the effects,in both the short run
Q30: The IS-LM model<br>A)represents both the aggregate demand
Q31: The multiplier effect arises because<br>A)the IS curve
Q33: Which of the following changes shifts the
Q34: The IS-LM-FE model<br>A)is a framework for Keynesian
Q35: Draw a saving-investment diagram to show how
Q36: Looking at the macroeconomic statistics for Friedmanland,you
Q37: A temporary supply shock,such as an increase