Suppose the intersection of the IS and LM curves is to the left of the FE line. What would most likely eliminate a disequilibrium among the asset, labor, and goods markets?
A) A rise in the price level, shifting the LM curve up and to the left
B) A fall in the price level, shifting the LM curve down and to the right
C) A rise in the price level, shifting the IS curve up and to the right
D) A fall in the price level, shifting the IS curve down and to the left
B
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