Suppose There Is an Increase in Expected Future Output

question 23

Multiple Choice

Suppose there is an increase in expected future output. This will cause which of the following to occur?

• A) The IS curve to shift left in the current period.
• B) The IS curve to shift right in the current period.
• C) The LM curve to shift up in the current period.
• D) The LM curve to shift down in the current period.
• E) Both the IS and LM curves to shift right in the current period.

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Definitions:

Interviewer Illusion

A bias that can occur during interviews where the interviewer overestimates their ability to evaluate the interviewee accurately.

Preconceptions

Pre-formed opinions or beliefs about something or someone, often without full knowledge or experience.

Human Factors Psychologist

A psychologist specializing in designing products and systems that match human physical and cognitive abilities.

User-friendly

Describes a product or system that is easy to use or navigate, enhancing the overall user experience.