In the basic closed-economy ISLM model,the goods market can be described by the
A)consumption function.
B)investment function.
C)government spending and tax.
D)goods market equilibrium condition.
E)all of the above.

Question

Quizplus · Accepted Answer

In the basic closed-economy ISLM model, the goods market is described by all of these elements: the consumption function, the investment function, government spending and taxes, and the goods market equilibrium condition. These components collectively determine the level of aggregate demand in the economy, which in turn helps to establish the equilibrium level of income and output in the goods market.

In the Basic Closed-Economy ISLM Model,the Goods Market Can Be