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Macroeconomics, 6e (Blanchard/Johnson)
Chapter 5: Goods and Financial Markets. The IS-LM Model
5.1 Multiple Choice Questions
1) The IS curve represents
A) the single level of output where the goods market is in equilibrium.
B) the single level of output where financial markets are in equilibrium.
C) the combinations of output and the interest rate where the money market is in equilibrium.
D) the combinations of output and the interest rate where the goods market is in equilibrium.
E) none of the above
Answer: D
Diff: 1
2) The IS curve will shift to the right when which of the following occ
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