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Suppose the intersection of the IS and LM curves is to the right of the FE line. What kind of adjustment would occur to achieve
Suppose the intersection of theISandLMcurves is to the right of theFEline. What kind of adjustment would occur to achieve a general equilibrium?
a.a rise in the price level, shifting theLMcurve up
b.a fall in the price level, shifting theLMcurve down
c.a rise in the price level, shifting theIScurve up
d.a fall in the price level, shifting theIScurve down
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