IS-LM Analysis Represents

question 20

Multiple Choice

IS-LM analysis represents

• A) monetary policy by a shift in the LM curve and fiscal policy by a shift in the IS curve.
• B) monetary policy by a shift in the IS curve and fiscal policy by a shift in the LM curve.
• C) fiscal and monetary policies by opposite shifts in the IS curve.
• D) fiscal and monetary policies by opposite shifts in the LM curve.
• E) none of the above.

---

Definitions:

Organized System

A structured set of components or entities that are interconnected and work together to achieve a particular goal or function.

Peer Review

A process used in academic and professional fields where work is evaluated by one or more people with similar competencies.

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation.

Principle of Falsifiability

A concept in the philosophy of science that asserts a hypothesis or theory should be testable and potentially disprovable by experimentation or observation.