If Output Is Below the Natural Rate Then Price Level

question 71

Multiple Choice

If output is below the natural rate then price level will _____, causing the _____ curve to shift right.

• A) rise, IS
• B) rise, LM
• C) fall, IS
• D) fall, LM

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Definitions:

Interest Payment

Interest Payment refers to the regular payment that a borrower makes to a lender for the use of borrowed money, typically part of the debt's service payments.

Cash Balance

The amount of cash a company has available at any given time, including currency, coins, and balances in checking and savings accounts.

Interest Payment

The amount paid by a borrower to a lender as compensation for the use of borrowed money.

Suppliers

Entities or individuals that provide goods or services to companies or other individuals, often playing a critical role in supply chains.