In the Long-Run ISLM Model and with Everything Else Held

question 95

Multiple Choice

In the long-run ISLM model and with everything else held constant,as long as the level of output ________ the natural rate level,the price level will continue to ________,shifting the LM curve to the ________,until finally output is back at the natural rate level.

• A)exceeds;rise;right
• B)exceeds;fall;left
• C)remains below;fall;right
• D)remains below;rise;left

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