The Following Curves Represent an Equilibrium in Which Markets? Match

question 48

Multiple Choice

The following curves represent an equilibrium in which markets? Match the curves with the type of equilibrium.
I.Money market equilibrium
II.Balance of payments equilibrium
III.Goods market equilibrium

• A) IS, BP, LM
• B) LM, BP, IS
• C) BP, IS, LM
• D) LM, IS, BP

---

Definitions:

Strategies

Plans or methods developed to achieve a goal or solve a problem.

Nash Equilibrium

A concept within game theory where no participant can gain by unilaterally changing their strategy if the strategies of the others remain unchanged.

Optimal Strategy

The best or most efficient course of action to achieve a specific goal or maximize a particular set of outcomes under given conditions.

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies if the other players keep their strategies unchanged.