Using the IS-LM Analysis, If the LM Curve Is Not

question 31

Multiple Choice

Using the IS-LM analysis, if the LM curve is not horizontal, the multiplier for an increase in government spending is ______ for an increase in government purchases using the Keynesian-cross analysis.

• A) larger than the multiplier
• B) the same as the multiplier
• C) smaller than the multiplier
• D) sometimes larger and sometimes smaller than the multiplier

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Definitions:

Time Series

A sequence of data points collected or recorded at successive times, usually at uniform intervals.

Cross-Sectional

A type of study or analysis that examines data from a population at one specific point in time.

Cross-Sectional

A type of observational study that involves the analysis of data collected from a population, or a representative subset, at one specific point in time.

Time Series

A sequence of data points, typically consisting of successive measurements made over a time interval.