To reach general equilibrium,the price level adjusts to shift the ________ until it intersects with the ________.
A)IS curve; FE line and LM curve
B)FE line; LM and IS curves
C)LM curve; FE line and IS curve
D)ND curve; FE line and NS curve

Question

Quizplus · Accepted Answer

In general equilibrium, the LM curve adjusts to intersect with the FE line (full employment line) and the IS curve (investment-savings curve), ensuring that the goods market, money market, and labor market are all in equilibrium.

To Reach General Equilibrium,the Price Level Adjusts to Shift the ________