________ Shifts the IS Curve to the Right

question 43

Multiple Choice

________ shifts the IS curve to the right.

• A) An increase in government spending
• B) A decrease in government spending
• C) An increase in the price level
• D) A decrease in the Z factors

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Definitions:

Imported Oil

Oil that is produced outside of one's home country and brought in through international trade agreements for consumption or use.

Government Spending

Expenditures by government agencies on goods and services that influence the economy.

Supply-Side Economics

An economic theory that suggests economic growth can be most effectively created by lowering taxes and decreasing regulation, to increase production.

Increasing Productive Capacity

The process or actions taken to enhance the capability of a company or economy to produce goods and services.