Question 1
Refer to the information provided in Figure 26.5 below to answer the question(s) that follow.
Refer to Figure 26.5. An increase in government spending shifts the ________ to the ________.
◦
IS curve; left
◦ Fed rule; right
◦
IS curve; right
◦ Fed rule; left
Question 2
Refer to the information provided in Figure 26.5 below to answer the question(s) that follow.
Refer to Figure 26.5. An increase in the price level shifts the ________ to the ________.
◦ Fed rule; right
◦
IS curve; right
◦
IS curve; left
◦ Fed rule; left