If the economy is on the LM curve,but is to the right of the IS curve,then the ________ market is in equilibrium,but aggregate ________ exceeds aggregate ________.
A)goods;output;demand
B)goods;demand;output
C)money;output;demand
D)money;demand;output

Question

Quizplus · Accepted Answer

If the economy is on the LM curve but is to the right of the IS curve, then the money market is already in equilibrium. However, aggregate output exceeds aggregate demand, indicating an excess supply of goods in the goods market. Therefore, option C is the correct answer.

If the Economy Is on the LM Curve,but Is to the Right