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Macro IS LM

Authored by Geraldyn Borbe

Financial Education

University

Used 2+ times

Macro IS LM
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20 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A decrease in government spending shifts the IS curve ____

Neither left nor downward

To the left

To the right

Either right or upward

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the short run, a monetary expansion leads to ____.

A decrease in output

No effect on output

Either increase or decrease in output

An increase in output

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If M/P is unchanged, it must be that ____.

M and P increased in the same proportion

The increase in P < done the increase in M

M is equal to P

The increase in M > than the increase in P

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following shifts the LM curve?

T

M

P

G

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

It reflects all combinations of i and Y where the goods market is in equilibrium

Aggregate supply relation

Aggregate demand relation

IS relation

LM relation

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Given the central banks sale of bonds, which of the following would be a result of the simultaneous equilibrium in the economy?

Upward shift of the IS curve

Increase in interest rate

Downward shift of the LM curve

Increase in output

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Given an increase in taxes, which of the following would be a result of the simultaneous equilibrium in the economy?

Increase in output

Increase in interest rate

Downward shift of the IS curve

Downward shift of the LM curve

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