Which of the Following Would Cause the IS Curve to Shift

question 14

Multiple Choice

Which of the following would cause the IS curve to shift?

• A)a change in the multiplier
• B)a change in business or consumer confidence
• C)an increase in autonomous tax revenue
• D)All of these would shift the IS curve.

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Definitions:

Temporal Aggregation

The process of combining or summarizing time-series data over longer time periods to simplify analysis, reduce variability, and identify trends.

Economies of Scale

Cost advantages that enterprises obtain due to scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out.

Responsiveness

The ability of a company or system to quickly and effectively respond to customer needs, changes in the market, or operational challenges.

Transportation Costs

Expenses associated with the movement of goods or materials from one location to another, including shipping, freight, and logistics costs.