IS Graph 2

question 82

Multiple Choice

IS Graph 2
-On the graph above,a possible cause of the rightward shift of the IS curve is an increase in ________.

• A)foreign demand for domestic goods
• B)taxes
• C)domestic demand for foreign goods
• D)the exchange rate
• E)none of the above

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Definitions:

Costs Of Production

All expenses incurred in the creation of goods or services, including raw materials, labor, and overhead costs.

Increasing Cost Industry

An increasing cost industry is one in which production costs rise as the industry's output increases, often due to scarce resources or increasing input prices.

Profit Maximization

The process by which a firm determines the price and output level that returns the greatest profit.

Firm

An organization or business entity engaged in commercial, industrial, or professional activities.