Question 1
The slope of the ________ is negative and the slope of the ________ is positive.
◦
IS curve; Fed rule
◦
AS curve;
IS curve
◦ Fed rule;
AD curve
◦
AS curve;
AD curve
Question 2
Each point on the
IS curve represents ________ in the goods market for the given interest rate.
◦ maximum investment
◦ an equilibrium point
◦ a positive relationship between the price level and aggregate output
◦ minimum pricing