In the IS-LM Analysis (And Ignoring the BP Curve), If

question 27

Multiple Choice

In the IS-LM analysis (and ignoring the BP curve) , if the economy is located at a point that is to the left (or below) the IS curve and also to the left (or above) the LM curve, there is __________ pressure in the real sector of the economy as well as an excess __________ money.

• A) expansionary; demand for
• B) expansionary; supply of
• C) contractionary; demand for
• D) contractionary; supply of

---

Definitions:

Perspective

A particular attitude towards or way of regarding something; a point of view.

Customer

A customer is an individual or entity that purchases goods or services from another individual or entity, often for personal use.

Unmet Needs

Desires or requirements of consumers that have not been addressed or satisfied by existing products or services in the market.

Business Models

The strategic plan for how a company will generate revenue, make a profit, and sustain its operations, outlining sources of income, target customer base, products, and details of financing.