If the Price Level Increases,everything Else Held Constant,the ________ Curve

question 36

Multiple Choice

If the price level increases,everything else held constant,the ________ curve shifts to the ________.

• A)IS;right
• B)IS;left
• C)LM;left
• D)LM;right

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Definitions:

Isoquant

A curve that represents all combinations of inputs that produce the same level of output in production theory.

Inputs

Factors or resources employed in producing goods, including time, manpower, and raw materials.

Lagrange Multipliers

A mathematical method used to find the maximum or minimum of a function subject to constraints.

Optimal Value

The most favorable or advantageous value that can be achieved under given constraints, often used in optimization problems.