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.

---

Definitions:

Abstract Ideas

Concepts that are not tangible or concrete, often involving complex thought processes, theories, or philosophical notions.

Inanimate Objects

Objects that lack life or consciousness, typically referring to items that are not alive.

Formal Operational Stage

The last of Jean Piaget's four stages of cognitive development, where abstract, logical thinking develops.

Concrete Operational Stage

A developmental phase in Piaget's theory of cognitive development, from approximately 7 to 11 years old, where children gain the ability to think logically about concrete events.