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The US Recession of 2001 Can Be Explained in Part by by a Declining

Question 82

Multiple Choice

The U.S. recession of 2001 can be explained in part by a declining stock market and terrorist attacks. Both of these shocks can be represented in the IS-LM model by shifting the ______ curve to the ______.


A) LM; right
B) LM; left
C) IS; right
D) IS; left

Correct Answer:

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