Consider an Initial IS-LM Equilibrium Point Which Corresponds to a Point

question 34

Multiple Choice

Consider an initial IS-LM equilibrium point which corresponds to a point labeled "A" on the current AD curve.
-Refer to the information above.If the nominal money supply falls by 4 percent with no change in the price level,the resulting IS-LM equilibrium corresponds to a point in the AD diagram

• A)which has moved upward along the same AD curve.
• B)4 percent straight above A on a new AD curve.
• C)4 percent straight below A on a new AD curve.
• D)directly to the right of A on a new AD curve.
• E)directly to the left of A on a new AD curve.

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