If the Economy Is on the LM Curve,but Is to the Left

question 9

Multiple Choice

If the economy is on the LM curve,but is to the left of the IS curve,aggregate output will ________ and the interest rate will ________.

• A)rise;rise
• B)rise;fall
• C)fall;rise
• D)fall;fall

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Definitions:

ABC Model

The Activity-Based Costing model, which allocates overhead costs to specific activities related to the production of goods or services for more accurate costing.

Resource Drivers

Factors or activities that significantly influence the consumption of resources in a process or operation.

Activity Drivers

Factors that influence the costs of business activities by measuring the amount of activity that drives costs.

Root Cause

The underlying or fundamental reason for a problem or issue, which, when addressed, prevents recurrence.