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© 2014 Pearson Canada Inc.#
Everything else held constant, if aggregate output is to the left of the IS curve, then there is
an excess ____ of goods which will cause aggregate output to ____.
A) supply; fall
B) supply; rise
C) demand; fall
D) demand; rise
Answer: D
Diff: 2 Type: MC Page Ref: 548
Skill: Recall
Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output
Everything else held constant, if aggregate output is to the ____ of the IS curve, then
there is an excess supply of goods which will cause aggregate output to ____.
A) right; fall
B) right; rise
C) left; fall
D) left; rise
Answer: A
Diff: 2 Type: MC Page Ref: 548
Skill: Recall
Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output
Everything else held constant, if aggregate output is to the ____ of the IS curve, then
there is an excess demand of goods which will cause aggregate output to ____.
A) right; fall
B) right; rise
C) left; fall
D) left; rise
Answer: D
Diff: 2 Type: MC Page Ref: 548
Skill: Recall
Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output
Everything else held constant, if aggregate output is to the ____ of the IS curve, then
there is an excess ____ of goods which will cause aggregate output to fall.
A) right; supply
B) right; demand
C) left; supply
D) left; demand
Answer: A
Diff: 2 Type: MC Page Ref: 548
Skill: Recall
Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output