When X Increases

question 3

Multiple Choice

When x increases

• A)IS curve shifts to the left.
• B)IS curve shifts to the right.
• C)LM curve shifts upward.
• D)LM curve shifts downward.

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Definitions:

Quantity Supplied

In economics, refers to the total amount of goods or services that producers are willing and able to sell at a given price within a specific time period.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price, at a given moment.

Price Floors

Minimum legally allowed prices set above the equilibrium price, typically imposed by the government to ensure producers receive a fair wage.

Equilibrium Price

The cost at which the amount of a product consumers want to buy matches the amount producers are willing to sell, leading to a balanced market situation.