How Well Do You Know ISLM?

1. Suppose the IS and LM curves show equilibria in the goods and money markets, respectively. Assume that these markets are clearly defined and separated. What effect on the curves and on overall equilibrium will the following events tend to have (will the curves shift right or left, will interest rates and income go up, down, or be uncertain?) (Some of the questions come with little hints in the text area at the bottom.)

IS Curve Will:
LM Curve Will:
Interest Rate Will:
Output Will:

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