The economy is in short-run equilibrium
A) at any point on the IS curve.
B) only at the natural level of GDP.
C) at any point on the LM curve.
D) only at a point that is on both the IS and LM curves.
D
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An individual holds $10,000 in a non-interest-earning checking account, and the overall price level rises significantly. Other things being constant, we would expect
A) the individual's real wealth to decrease and consumption to decline. B) no change in the individual's real wealth but a decline in real national product. C) the individual's stock of real wealth to decrease but real national income to increase. D) the individual's wealth to increase.
Refer to the figure above. If there is downward wage rigidity in the market, what is the wage rate at which wages will be held, everything else remaining unchanged?
A) $25 B) $10 C) $30 D) $15