A change in income in the IS-LM model resulting from a change in the price level is represented by a aggregate demand curve, while a change in income in the IS-LM model for a given price level is represented by a aggregate demand curve.
A)movement along the; shift. in the
B)shift in the; movement.
C)along the vertical; horizontal.
D)horizontal; vertical.

Question

Quizplus · Accepted Answer

A change in income in the IS-LM model resulting from a change in the price level is represented by a movement along the aggregate demand curve, while a change in income in the IS-LM model for a given price level is represented by a shift in the aggregate demand curve.

A Change in Income in the IS-LM Model Resulting from a Change