Exhibit: IS*-LM* and AD A small open economy with a floating exchange rate is initially in equilibrium at A with IS₁*; LM₁*. Holding all else constant, if the domestic price level increases, then the _____ curve will shift to _____. A)LM₁*; LM₂* B)LM₁*; LM₃* C)IS₁*; IS₂* D)IS₁*; IS₃*

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The Answer of Exhibit: IS*-LM* and AD A small open economy with a floating exchange rate is initially in equilibrium at A with IS₁*; LM₁*. Holding all else constant, if the domestic price level increases, then the _____ curve will shift to _____. A)LM₁*; LM₂* B)LM₁*; LM₃* C)IS₁*; IS₂* D)IS₁*; IS₃*

Exhibit: IS*-LM* and AD ​ a Small Open Economy

Exhibit: IS-LM and AD a Small Open Economy