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Suppose the Intersection of the IS and LM Curves Is

question 81

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Suppose the intersection of the IS and LM curves is to the left of the FE line.What would most likely eliminate a disequilibrium among the asset,labour,and goods markets?


Definitions:

Feedback Mechanism

A process in biological and mechanical systems where the system's output is fed back into the system as input, adjusting its performance to meet a desired goal.

Effector

An organ or cell that acts in response to a stimulus, often involved in muscle contraction or gland secretion.

Reproductive System

A system of sex organs within an organism which work together for the purpose of sexual reproduction.

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