Multiple Choice
An increase in wealth that doesn't affect labor supply would cause the IS curve to ________ and the FE line to ________.
A) shift down and to the left; be unchanged
B) shift down and to the left; shift left
C) shift up and to the right; be unchanged
D) shift up and to the right; shift left
Correct Answer:

Verified
Correct Answer:
Verified
Q42: An increase in the expected future marginal
Q43: Use the IS-LM model to determine the
Q44: The IS-LM model predicts that a temporary
Q45: An increase in wealth would cause the
Q46: An increase in the effective tax rate
Q49: A temporary decrease in government purchases causes
Q50: Keynesian economists think general equilibrium is not
Q51: A temporary adverse supply shock directly causes<br>A)a
Q52: For each of the following changes,what happens
Q62: A rise in the price of a