Figure 4.3 illustrates the demand for tacos. Assume that tacos and burritos are substitutes. A decrease in the price of burritos would bring about a movement from:

Which of the following best defines the LM curve?

A) the combinations of i and Y that maintain equilibrium in the goods market B) illustrates the effects of changes in i on investment C) illustrates the effects of changes in i on desired money holdings by individuals D) the combinations of i and Y that maintain equilibrium in financial markets

A year-long drought that destroys most of the summer's crops would be considered a:

A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.