Multiple Choice
The IS curve shows the combinations of output and the real interest rate for which
A) the goods market is in equilibrium.
B) the labour market is in equilibrium.
C) the financial asset market is in equilibrium.
D) an increase in output will cause the market-clearing interest rate to be bid up.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: People have increased their expectations of inflation
Q4: A rise in expected future output that
Q5: The full-employment (FE)line shifts right if<br>A)unemployment declines.<br>B)technology
Q6: Suppose the Bank of Canada's short-run response
Q7: In an oil-importing country,a permanent fall in
Q8: Banks decide to raise the interest rate
Q9: An increase in labour supply<br>A)shifts FE to
Q37: Classical economists believe that in the short
Q38: Classical economists think general equilibrium is attained
Q109: The aggregate demand curve<br>A)is vertical.<br>B)slopes upward.<br>C)is horizontal.<br>D)slopes