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Figure 10.3 Panel (A) Panel (B)

Question 34

Multiple Choice

Figure 10.3
Figure 10.3     Panel (a)  Panel (b)  -Refer to Figure 10.3..A negative demand shock with no change in the real interest rate is best represented by ________ in panel (a) and ________ in panel (b) . A)  a shift from AE₃ to AE₂; a shift from IS₂ to IS₁ B)  a shift from AE₂ to AE₃; a shift from IS₁ to IS₂ C)  a shift from AE₂ to AE₁; a movement from point B to point A D)  a shift from AE₃ to AE₁; a movement from point C to point A
Panel (a) Panel (b)
-Refer to Figure 10.3..A negative demand shock with no change in the real interest rate is best represented by ________ in panel (a) and ________ in panel (b) .


A) a shift from AE₃ to AE₂; a shift from IS₂ to IS₁
B) a shift from AE₂ to AE₃; a shift from IS₁ to IS₂
C) a shift from AE₂ to AE₁; a movement from point B to point A
D) a shift from AE₃ to AE₁; a movement from point C to point A

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