help with economics multiple choice question on GDP/interest rates please?

S

Stéphanie

New member
Given IS-LM analysis, an unexpected increase in the price level, in the absence of any policy adjustment will:

a) increase both interest rates and GDP
b) reduce both interest rates and GDP
c) reduce GDP and increase interest rates
d) increase GDP but cause and ambiguous, indeterminate effect on interest rates
e) increase interest rates but cause an ambiguous, indeterminate effect on GDP
 
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