A change in which of the following variables will cause a shift of the IS curve in the current period?
A)the current interest rate
B)current output
C)current taxes
D)all of the above
E) none of the above

Question

Quizplus · Accepted Answer

A change in any of the variables mentioned (current interest rate, current output, current taxes) will cause a shift of the IS curve in the current period. This is because changes in these variables affect aggregate demand and the equilibrium level of output in the short run.

A Change in Which of the Following Variables Will Cause