The IS Curve Shows the Combinations of Output and the Real

question 72

Multiple Choice

The IS curve shows the combinations of output and the real interest rate for which

• A)the goods market is in equilibrium.
• B)the labor market is in equilibrium.
• C)the financial asset market is in equilibrium.
• D)an increase in output will cause the market-clearing interest rate to be bid up.

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Definitions:

Attitude-Discrepant Behavior

Actions that contradict an individual's internal attitudes, often leading to a feeling of discomfort or cognitive dissonance.

Dispositional Attribution

The tendency to attribute someone’s behavior to their internal characteristics or personality rather than to external factors.

Self-Serving Bias

A cognitive bias that involves taking personal credit for success while blaming external factors for failures.

Bystander Effect

A social psychological phenomenon in which individuals are less likely to offer help to a victim when other people are present.