The IS Curve Will Not Shift When Which of the Following

question 4

Multiple Choice

The IS curve will not shift when which of the following occurs?

• A)a reduction in government spending
• B)a reduction in the interest rate
• C)a reduction in consumer confidence
• D)all of the above
• E) none of the above

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Definitions:

Marginal-Cost Curve

A curve that shows the cost of producing one additional unit of a good or service.

Average-Total-Cost Curve

A graphical representation that shows the average total cost per unit of output at various levels of production.

Average Total Cost

The total cost of production divided by the quantity of output produced, indicating the average cost per unit.

Total Output

Total output is the total quantity of goods or services produced by an economy, firm, or machine in a specific period.