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
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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.
Transcribed Image Text: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.
Transcribed Image Text: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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