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

question 18

Multiple Choice

If the economy is on the IS curve,but is to the left of the LM curve,then the ________ market is in equilibrium,but the interest rate is ________ the equilibrium level.

• A)goods;below
• B)goods;above
• C)money;below
• D)money;above

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Definitions:

Average Fixed Costs

Production expenses that stay the same, independent of output levels, divided by the number of units produced.

Drones

Unmanned aerial vehicles (UAVs) that are either operated by remote control or autonomously by computers.

Total Variable

The total of all variable costs associateed with the production of goods or services.

Total Fixed

All expenses that are unchanged irrespective of the volume of production or output combined.