In the IS-LM framework, an increase in government expenditure shifts the:

Question

Team JKSSB Mock Tests · Accepted Answer

An increase in government spending raises aggregate demand, shifting the IS curve to the right, leading to higher income and interest rates in the short run.

In the IS-LM framework, an increase in government expenditure shifts the: MCQ with Answer and Explanation

Solution (By JKSSB Mock Tests)

Discuss this Question (0)

Practice More Economy Set 1 Questions