The IS Curve Shifts to the Left When

question 25

Multiple Choice

The IS curve shifts to the left when

• A)taxes increase.
• B)government spending increases.
• C)the money supply increases.
• D)autonomous planned investment spending increases.

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Definitions:

Marginal Social Cost

Marginal social cost is the total cost to society of producing an additional unit of a good, including both private costs and any external costs.

External Costs

Costs incurred as a result of an economic activity that are not borne by the entities undertaking the activity but rather by other parties or society at large.

Marginal Cost

The rise in expense associated with the production of an extra unit of a product or service.

Benefits To Consumers

Refers to the advantages or improvements in well-being and satisfaction that consumers experience from purchasing and using goods and services.