At Points Above the IS Curve, There Is an _____

question 31

Multiple Choice

At points above the IS curve, there is an _____ and at points below the IS curve there is an _____.

• A)excess demand for goods; excess supply of goods
• B)excess demand for money; excess supply of money
• C)excess supply of money; excess demand for money
• D)excess supply of goods; excess demand for goods

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Definitions:

Machine Hour Requirement

A measure often used in manufacturing to estimate the number of machine hours required to complete a job, task, or project.

Excess Capacity

A situation where a company can produce more goods than demanded, often leading to underutilized resources or a need for strategic adjustments.

Competitive Bidding

A procurement process where suppliers submit proposals or bids to win a contract, often leading to lower prices through competition.

Fixed Costs

Costs that do not change with the level of production or sales activity, such as rent, salaries, and insurance.