The IS-LM Model

question 30

Multiple Choice

The IS-LM model

• A)represents both the aggregate demand and aggregate supply of the economy.
• B)represents the aggregate demand of the economy.
• C)cannot be used when the assumption of fixed prices is relaxed.
• D)represents both the goods and labour markets.

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Definitions:

Feelings

Feelings are emotional states or reactions that can encompass a wide range of sensations, such as happiness, sadness, anger, or fear.

Emotion

A complex psychological state involving an individual's state of mind, physiological changes, and an outward expression.

Mood

A temporary state of mind or feeling that affects a person's emotional state.

Affect

The observable expression of emotions, which can influence and be influenced by moods and feelings.