Combining the IS and monetary policy rule curves gives us:
A) Okun's law.
B) the Phillips curve.
C) the aggregate demand curve.
D) the MP curve.
E) current output.

Question

Quizplus · Accepted Answer

Combining the IS (Investment-Savings) curve, which represents equilibrium in the goods market, with the monetary policy rule curve, which represents the central bank's response to changes in the economy, gives us the aggregate demand curve. This curve shows the total demand for goods and services in an economy at different price levels.

Combining the IS and Monetary Policy Rule Curves Gives Us