Multiple Choice
An increase in government spending causes the equilibrium level of aggregate output to ________ at any given interest rate and shifts the ________ curve to the ________,everything else held constant.
A) rise;LM;right
B) rise;IS;right
C) fall;IS;left
D) fall;LM;left
Correct Answer:
Verified
Correct Answer:
Verified
Q15: In the Keynesian cross diagram,a decline in
Q16: Under Keynesian analysis,aggregate demand can be written
Q17: In the Keynesian cross diagram,a decrease in
Q18: A tax increase _ disposable income,_ consumption
Q19: A decrease in autonomous planned investment spending,other
Q21: A shift in tastes toward American goods
Q22: When interest rates rise in the United
Q23: An increase in unplanned inventory investment for
Q24: Equilibrium output is reduced by an increase
Q25: The IS curve shifts to the left