Multiple Choice
A change in income in the IS-LM model for a fixed price
A) represents a shift in the aggregate demand curve.
B) represents a movement along the aggregate demand curve.
C) has the same effect on the aggregate demand curve as a change in income in the IS-LM model resulting from a change in the price level.
D) does not represent a change in the aggregate demand curve.
Correct Answer:

Verified
Correct Answer:
Verified
Q45: Assume that an economy is characterized
Q46: In the IS-LM analysis, the increase in
Q47: In the IS-LM model when taxation increases,
Q48: Assume that the economy is initially in
Q49: During the financial crisis of 2008-2009, many
Q51: In the IS-LM model under the usual
Q52: In the IS-LM model when M/P rises,
Q53: One explanation for the impact of expected
Q54: When drawn with the interest rate on
Q55: A tax cut combined with tight money,