Multiple Choice
Suppose the intersection of the IS and LM curves is to the left of the FE line.What would most likely eliminate a disequilibrium among the asset,labour,and goods markets?
A) a rise in the price level,shifting the LM curve up
B) a fall in the price level,shifting the LM curve down
C) a rise in the price level,shifting the IS curve up
D) a fall in the price level,shifting the IS curve down
Correct Answer:

Verified
Correct Answer:
Verified
Q50: Keynesian economists think general equilibrium is not
Q76: People have reduced their expectations of inflation
Q77: Which of the following is true for
Q78: Analyze the following statement,and show what would
Q79: The FE line shows the level of
Q80: A temporary supply shock,such as a bumper
Q82: When demand for money increases,interest rate rises.This
Q83: Which market adjusts the most quickly in
Q84: You have just read that the Bank
Q86: Using the IS-LM and AD curves,analyze the