Points to the left of the IS curve represent excess demand for goods.

Name: Points to the left of the IS curve represent excess demand for goods.
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Question

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Points to the left of the IS curve represent lower interest rates and higher levels of output and income, which imply excess demand for goods. Points to the right of the curve represent higher interest rates and lower levels of output and income, which imply excess supply of goods.

Points to the Left of the IS Curve Represent Excess