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:

Consumer Price Index

An index that measures the change over time in the price of a basket of consumer goods and services, often used as a measure of inflation.

Real Wages

Wages adjusted for inflation, representing the purchasing power of income earned through work.

Base Year

A specific year chosen as a point of reference for comparison over time in economic analysis.

CPI (Consumer Price Index)

An index that measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.