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

question 65

Multiple Choice

If the economy is on the IS curve,but is to the left of the LM 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:

Cohesiveness

The degree to which members of a group or team are attracted to each other and motivated to stay in the group.

Ostracism

The social exclusion or expulsion of an individual from a group or society, often used as a form of social punishment.

Broader Influence

The extended or wide-ranging effect, impact, or authority that something or someone possesses.

Specific Positions

Targeted or particular roles within an organization or structure, each with defined responsibilities and tasks.