The economic slowdown in Canada in 2014 can be explained in part by a decline in investment and exports. Both of these shocks can be represented in the IS-LM model by shifting the _____ curve to the _____.
A)LM; right
B)LM; left
C)IS; right
D)IS; left

Question

Quizplus · Accepted Answer

In the IS-LM model, a decline in investment and exports would decrease aggregate demand, shifting the IS curve to the left.

The Economic Slowdown in Canada in 2014 Can Be Explained