Image An increase in government purchases willshift the IS curve up.shift the LM curve down.shift the IS curve down.O shift the LM curve up. In the long run, an increase in money supply willincrease consumption and investment.increase output.decrease interest rate and increase real money demand.increase price level.

An increase in government purchases will shift the IS curve up. Reason: As the government spending…

Answered: An increase in government purchases…

An increase in government purchases will shift the IS curve up. shift the LM curve down. shift the IS curve down. shift the LM curve up.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Image

An increase in government purchases will
shift the IS curve up.
shift the LM curve down.
shift the IS curve down.
O shift the LM curve up.

In the long run, an increase in money supply will
increase consumption and investment.
increase output.
decrease interest rate and increase real money demand.
increase price level.

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