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 rise.
A)right;supply
B)right;demand
C)left;supply
D)left;demand

Question

Quizplus · Accepted Answer

When aggregate output is to the left of the IS curve, it indicates that there is an excess demand for goods. This excess demand will lead to an increase in aggregate output as producers ramp up production to meet the higher demand.

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