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    Exam 9: The Is-Lmad-As Model
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    A Temporary Decline in Productivity Would Cause the IS Curve
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A Temporary Decline in Productivity Would Cause the IS Curve

Question 2

Question 2

Multiple Choice

A temporary decline in productivity would cause the IS curve to


A) shift up and to the right.
B) shift down and to the left.
C) remain unchanged.
D) shift up and to the right only if people face borrowing constraints.

Correct Answer:

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