At every point on the IS curve, the level of income on the horizontal axis equals
A) planned autonomous spending.
B) planned autonomous spending times the multiplier.
C) planned autonomous spending divided by the multiplier.
D) planned expenditures times the multiplier.
B
You might also like to view...
Suppose a certain firm is able to produce 165 units of output per day when 15 workers are hired. The firm is able to produce 176 units of output per day when 16 workers are hired (holding other inputs fixed). Then the marginal product of the 16th worker is
a. 10 units of output. b. 11 units of output. c. 16 units of output. d. 176 units of output.
Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B