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The IS-LM-FE model predicts that a temporary negative supply shock A reduces output and the price of goods and services B reduces output and increase the real interest rate

The IS-LM-FE model predicts that a temporary negative supply shock A) reduces output and the price of goods and services B) reduces output, and increase the real interest rate. C) reduces output and the real interest rate. D) reduces output, but leave prices unchanged. 5) Suppose the intersection of the IS and LM curves is to the left of the FE line. What kind of adjustment would occur to achieve a general equilibrium? A) a rise in the price level, shifting the LM curve up B) a fall in the price level, shifting the LM curve down C) a rise in the price level, shifting the IS curve up D)

Feb 07 2020 View more View Less

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