Question

A change in income in the is'lm model resulting from a change in the price level is represented by a ______ aggregate demand curve, while a change in income in the is'lm model for a given price level is represented by a ______ aggregate demand curve.

Answer 1

A change in income in the is'lm model resulting from a change in the price level is represented by a *movement* aggregate demand curve, while a change in income in the is'lm model for a given price level is represented by a *shift in the* aggregate demand curve.