Multiple Choice
The IS-LM model
A) represents both the aggregate demand and aggregate supply of the economy.
B) represents the aggregate demand of the economy.
C) cannot be used when the assumption of fixed prices is relaxed.
D) represents both the goods and labour markets.
Correct Answer:
Verified
Correct Answer:
Verified
Q25: Suppose you were a forecaster of the
Q26: Desired consumption is Cᵈ = 2000 +
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
Q31: The multiplier effect arises because<br>A)the IS curve
Q32: After a temporary adverse supply shock hits
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