Question

Let's say we use the IS-LM model in the context of the short-run and find that the level of real gdp or income is below the natural level of output, we would expect the price level to ______, over time which would lead the ______ curve to shift to the right and return output to the natural level.

a. increase; LM

b. decline; LM

c. decrease; IS

d. increase; IS​

Answer 1

Answer:

a. increase; LM

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