If the IS curve is unstable, output will be more stable if the monetary authority targets the money supply.
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Q30: A decrease in government spending causes the
Q31: The IS-LM model predicts that policy makers
Q32: The natural rate level of output is
Q33: If autonomous consumption increases and the money
Q34: The AD curve slopes upward because the
Q36: The IS-LM model implies that output always
Q37: If output is below the natural rate
Q38: A decrease in the money supply causes
Q39: Movement up along the AD curve is
Q40: If the monetary authority wants to mitigate
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