Refer to the Following Figure When Answering the Following Questions

question 23

Multiple Choice

Refer to the following figure when answering the following questions.
Figure 11.6: IS Curve
-Consider the IS curve in Figure 11.6. Holding the real interest rate constant, beginning at point e, if there is an aggregate demand shock:

• A) the IS curve shifts right to point c.
• B) the IS curve shifts right to point a.
• C) the IS curve shifts left to point g.
• D) there is a movement along the IS curve to point d.
• E) Not enough information is given.

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Definitions:

Agricultural Areas

Regions primarily engaged in the production of food, feed, fiber, and other agricultural products through farming activities.

Pools

Agreements between companies in the same industry to fix prices and divide markets among themselves, often to avoid competition and increase profitability.

Interstate Commerce Act

A United States federal law that was designed to regulate the railroad industry and its monopolistic practices by requiring reasonable and just rates with no discrimination.

Sherman Anti-Trust Act

A landmark federal statute in the United States passed in 1890 that prohibits monopolistic business practices and promotes competition in the marketplace.