A Temporary Decline in Productivity Would Cause the IS Curve

question 2

Multiple Choice

A temporary decline in productivity would cause the IS curve to

• A)shift up and to the right.
• B)shift down and to the left.
• C)remain unchanged.
• D)shift up and to the right only if people face borrowing constraints.

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Definitions:

Superscript

A character, number, or symbol written or printed above the line of text, often used for citations, footnotes, or mathematical powers.

Six-Figure Accuracy

A term indicating a level of precision or accuracy to the nearest hundred thousand in numerical calculations or measurements.

Powers

In mathematics, the term refers to the exponentiation operation, where a number is raised to the power of another number, indicating repeated multiplication.

Six-Figure Accuracy

A term usually used to describe financial calculations or measurements that are accurate to at least 100,000 or within six figures.