Quiz 08 with solutions - Quiz 08 1 A movement along an aggregate demand curve corresponds to a change in income in the IS-LM model while a shift in an

Quiz 08 with solutions - Quiz 08 1 A movement along an...

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Quiz 08March 28, 20141. A movement along an aggregate demand curve corresponds to a change in income in the IS-LMmodel ______, while a shift in an aggregate demand curve corresponds to a change in income in the IS-LMmodel ______.A)resulting from a change in monetary policy; resulting from a change in fiscal policy.B)resulting from a change in fiscal policy; resulting from a change in monetary policy.C)at a given price level; resulting from a change in the price level.D)resulting from a change in the price level; at a given price level.2. According to the IS-LMmodel, if Congress raises taxes but the Fed wants to hold income constant, then the Fed must ______ the money supply.
Quiz 08March 28, 2014

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