Everything else held constant,if aggregate output is to the right 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

Question

Quizplus · Accepted Answer

When aggregate output is to the right of the IS curve, it indicates that production is higher than what the economy is currently demanding at prevailing interest rates, leading to an excess supply of goods. This imbalance typically results in a decrease in aggregate output as producers adjust by reducing production.

Everything Else Held Constant,if Aggregate Output Is to the Right