Consider an Initial IS-LM Equilibrium Point Which Corresponds to a Point

question 119

Multiple Choice

Consider an initial IS-LM equilibrium point which corresponds to a point labeled "A" on the current AD curve.
-Refer to the information above.If business confidence improves with no change in the price level,the resulting IS-LM equilibrium corresponds to a point in the AD diagram

• A)which has moved downward along the same AD curve.
• B)straight above A on a new AD curve.
• C)straight below A on a new AD curve.
• D)directly to the right of A on a new AD curve.
• E)directly to the left of A on a new AD curve.

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Definitions:

Randomly Varying

Exhibiting changes that lack a specific pattern, direction, or expectation, occurring in a manner that cannot be predicted.

Reinforcement

In behavioral psychology, a consequence that will strengthen an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.

Variable Interval

A variable interval refers to a schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, used in behaviorist studies.

Fixed Interval

A schedule of reinforcement where a response is rewarded after a set period of time has passed.