Figure 7-5

-In Figure 7-5 above,we begin with the expansion of aggregate demand in the IS-LM model,with a result transferred into this model as a movement from points A to

Question

Figure 7-5
 
-In Figure 7-5 above,we begin with the expansion of aggregate demand in the IS-LM model,with a result transferred into this model as a movement from points A to

Quizplus · Accepted Answer

In the IS-LM model, an expansion of aggregate demand typically results in an outward shift of the IS curve, leading to a higher equilibrium level of income and interest rates, which corresponds to a movement from point A to point B on a diagram that represents these dynamics.

Figure 7-5 -In Figure 7-5 Above,we Begin with the Expansion of Aggregate