The IS-LM Model Predicts That a Temporary Adverse Supply Shock

question 20

Multiple Choice

The IS-LM model predicts that a temporary adverse supply shock

• A)reduces output,national saving,and investment,but not the real interest rate.
• B)reduces output,national saving,and the real interest rate,but not investment.
• C)reduces the real interest rate,investment,and output,but not national saving.
• D)reduces output,national saving,investment,and the real interest rate.

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Definitions:

Lymphedema

A condition where swelling occurs in the body's tissues due to a blockage in the lymphatic system.

Mastectomy

A surgical procedure involving the removal of one or both breasts, partially or completely, often performed to treat or prevent breast cancer.

Raynaud Phenomenon

A condition characterized by constriction of the small blood vessels in extremities, leading to color changes, pain, numbness, and sometimes complications in fingers and toes when exposed to cold or stress.

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A condition caused by the narrowing of arteries that leads to decreased blood flow to limbs, often resulting in pain and skin changes.