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

question 119

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 business confidence improves with no change in the price level,the resulting IS-LM equilibrium corresponds to a point in the AD diagram

• A)which has moved downward along the same AD curve.
• B)straight above A on a new AD curve.
• C)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.

---

Definitions:

Foot-In-The-Door Technique

A method for inducing compliance in which a small request is followed by a larger request.

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Triangular Model of Love

A theory proposed by psychologist Robert Sternberg that describes love in terms of three components: intimacy, passion, and commitment.

Intimacy

The close, familiar, and usually affectionate or loving personal relationship with another person or group.