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Refer to the Following Figure When Answering the Following Questions

Question 23

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Refer to the following figure when answering the following questions.
Figure 11.6: IS Curve Refer to the following figure when answering the following questions. Figure 11.6: IS Curve   -Consider the IS curve in Figure 11.6. Holding the real interest rate constant, beginning at point e, if there is an aggregate demand shock: A)  the IS curve shifts right to point c. B)  the IS curve shifts right to point a. C)  the IS curve shifts left to point g. D)  there is a movement along the IS curve to point d. E)  Not enough information is given.
-Consider the IS curve in Figure 11.6. Holding the real interest rate constant, beginning at point e, if there is an aggregate demand shock:


A) the IS curve shifts right to point c.
B) the IS curve shifts right to point a.
C) the IS curve shifts left to point g.
D) there is a movement along the IS curve to point d.
E) Not enough information is given.

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