In the IS-LM model when M/P rises, in short-run equilibrium, in the usual case, the interest rate ______ and output ______.
Fill in the blank(s) with the appropriate word(s).
falls; rises
Economics
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Explain why Relative PPP is useful when comparing countries that base their price levels on different product baskets
What will be an ideal response?
Economics
A decrease in the demand for a product will cause output of that product to
a. increase and the demand for and prices of the resources used to produce the product to rise. b. decrease and both the demand for and prices of the resources used to produce the product to fall. c. decline; the demand for the resources used to produce the product will remain constant. d. increase; the price of resources used to produce the product will rise if their supply is elastic but fall if supply is inelastic.
Economics