The IS curve becomes steeper when
A) government spending is relatively small.
B) the income tax rate in the current period is relatively small.
C) current changes in the real interest rate cause large changes in current real output.
D) changes in the current real interest rate cause small changes in current demand.
E) none of the above
D
You might also like to view...
In the short run ________
A) the more flexible wages and prices are, the more inflation responds to the output gap B) the more sticky wages and prices are, the more difficult to tell the difference between the short run and long run aggregate supply curves C) if wages and prices are sticky, aggregate output is always at its potential level D) all of the above E) none of the above
Data on education and earnings reveal:
A. negative age-earnings profiles for male workers. B. no relationship between the two. C. a positive relationship between the two. D. a negative relationship between the two.