Suppose the Economy Is Operating on the LM Curve but Not

question 4

Multiple Choice

Suppose the economy is operating on the LM curve but not on the IS curve. Given this information, we know that:

• A) the money market and goods market are in equilibrium and the bond market is not in equilibrium.
• B) the money market and bond markets are in equilibrium and the goods market is not in equilibrium.
• C) the goods market is in equilibrium and the money market is not in equilibrium.
• D) the money, bond and goods markets are all in equilibrium.
• E) neither the money, bond, nor goods markets are in equilibrium.

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Definitions:

Management By Exception

A management strategy where leaders intervene only when necessary, mainly when there are deviations from expected outcomes; it emphasizes autonomy in the regular tasks.

Positive Reinforcement

A technique in behavior analysis that involves the addition of a stimulus following a desired behavior, increasing the likelihood of that behavior occurring again.

Negative Reinforcement

A behavioral concept where the removal of an unpleasant stimulus strengthens a desired behavior.

Full Range Leadership Model

A leadership model that suggests leaders can operate across a spectrum of behavioral tactics, from laissez-faire to transformational leadership strategies.