Macroeconomics Quiz

The IS-LM model represents the................. equilibrium of the economy.

• General

• Partial

• Goods market only

• Money market only

The........market equilibrium shown by the IS curve

• Capital

• Money

• Goods

• Textile

IS–LM model shows the............ of the goods and money markets

• Separation

• Integration

• Closure

• None of the above

The LM curve reflects equilibrium in the...... market .

• Money

• Capital

• Money

• Textile

The....... shows the various combinations of output and the interest rate when the goods market is in equilibrium

• LM curve

• IS curve

• Demand curve

• Supply curve

The....... shows the various combinations of output and interest rate when the money market is in equilibrium.

• LM curve

• IS curve

• Demand curve

• Supply curve

Decrease in............... causes investment spending to rise which shifts aggregate demand curve up and raises the income level.

• Saving

• Interest rate

• Income

• Production

The .............. model relates the monetary policy.

• LM

• IS

• ML

• SI

The IS model relates to the............. policy.

• Fiscal

• Monetary

• Education

• Health

An increase in the money supply shifts the______ curve to the right, and the aggregate demand curve______.

• IS; shifts to the right

• IS; does not shift

• LM; shifts to the right

• LM; does not shift