General equilibrium occurs at which point in the IS- LM diagram? O A. the point at which the FE line and the LM curve intersect B. the point at which the FE line and the IS curve intersect O c. the point at which the FE line and the IS and LM curves intersect O D. the point at which the IS and LM curves intersect If the economy isn't in general equilibrium, what determines output and the real interest rate? O A. the point at which the FE line and the IS curve intersect B. the point at which the IS and LM curves intersect O c. the point at which the FE line and the LM curve intersect O D. the point at which the FE line and the IS and LM curves intersect What economic forces act to bring the economy back to general equilibrium? O A. adjustment of the price level moves the LM curve O B. adjustment of the real interest rate moves the IS curve C. adjustment of future income moves the IS curve O D. adjustment of output moves the LM curve

General equilibrium occurs at which point in the IS- LM diagram? O A. the point at which the FE line and the LM curve intersect B. the point at which the FE line and the IS curve intersect O c. the point at which the FE line and the IS and LM curves intersect O D. the point at which the IS and LM curves intersect If the economy isn't in general equilibrium, what determines output and the real interest rate? O A. the point at which the FE line and the IS curve intersect B. the point at which the IS and LM curves intersect O c. the point at which the FE line and the LM curve intersect O D. the point at which the FE line and the IS and LM curves intersect What economic forces act to bring the economy back to general equilibrium? O A. adjustment of the price level moves the LM curve O B. adjustment of the real interest rate moves the IS curve C. adjustment of future income moves the IS curve O D. adjustment of output moves the LM curve

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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