In the Keynesian Model,suppose the Fed Sets a Target for the Real

question 116

Multiple Choice

In the Keynesian model,suppose the Fed sets a target for the real interest rate.If the IS curve shifts down and to the left,and the Fed wants to keep output unchanged in the short run and the price level unchanged in the long run,it will

• A)shift the LR curve up.
• B)not shift the LR curve.
• C)shift the LR curve down.
• D)shift the IS curve up and to the right.

---

Definitions:

Francis Crick

A British scientist known for co-discovering the structure of the DNA molecule with James Watson.

Crystallized Intelligence

The capability of applying knowledge and experiences that one has learned over time.

Triarchic Intelligence

A theory by Robert Sternberg that intelligence consists of analytical, creative, and practical aspects.

Fluid Intelligence

The ability to solve new problems, use logic in new situations, and identify patterns without relying on previously acquired knowledge.