(Exhibit: IS-LM Fiscal Policy) Based on the graph, starting from equilibrium at interest rate r1 and income Y1, a decrease in government spending would generate the new equilibrium combination of interest rate and income:
What will be an ideal response?
r3, Y2
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Managerial economics refers to the application of microeconomics to business decision making
Indicate whether the statement is true or false
Which of the following is true about the demand curve facing the dominant firm?
A) It equals market demand minus fringe firms' supply curve. B) It is identical to market demand. C) It equals market demand minus demand facing the fringe firms. D) It is horizontal.
What percentage of the non-farm labor force in the United States belonged to a labor union in 2012?
a. less than 10 percent b. approximately 11 percent c. approximately 28 percent d. more than 40 percent
Which of the following is an accurate statement about the money market?
a. Long-term interest rates affect the demand for money. b. Short-term interest rates affect the demand for money. c. Long-term financial assets can be easily used. d. Short-term financial assets cannot be easily used.