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

Question

Quizplus · Accepted Answer

When aggregate output is to the right of the IS curve, it indicates that at the current interest rate, the level of investment and savings are such that the output exceeds the demand, leading to an excess supply of goods. This situation will cause aggregate output to fall as producers adjust by reducing production.

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