A temporary decline in productivity would cause the IS curve to
A) shift up and to the right.
B) shift down and to the left.
C) remain unchanged.
D) shift up and to the right only if people face borrowing constraints.
C
Economics
You might also like to view...
Referring to Figure 19.2, the effect of an increase in Japanese prices is represented by a movement from point
A) d to c. B) c to d. C) a to d. D) a to b.
Economics
The role of the progressive tax system as an autonomous fiscal stabilizer requires that the budget
a. should require actual deficits be equal to zero on average. b. should go into a surplus at appropriate points in the business cycle. c. cannot have a structural deficit component. d. Both a and b e. None of the above
Economics