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Questions › CUET-PG › CUET-PG 2026 › Q56
4 marks, −1Macroeconomics › IS-LM model › Equilibrium and shifts in IS-LMModerateabout 1 min

CUET-PG 2026 Question 56: IS-LM model

Consider the following statements.

A. IS curve shifts to right when government's expenditure rises.

B. LM Curve shifts to left when money supply falls.

C. Interactions of IS-LM curve determines equilibrium of interest rate and income.

D. A rise in price level shift LM curve to left.

E. Liquidity trap makes LM curve vertical.

Choose the correct answer from the options given below:

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Answer and worked solution

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IS-LM model has come up 137 times in 7 exams since 2004.

What this question tests

This question is on Equilibrium and shifts in IS-LM, part of IS-LM model in Macroeconomics.

Solving for income and the interest rate and tracing what shifts each curve.

TestStop has 18 past-paper questions on this subtopic; the nearest in year are below.

  • IIT JAM 2022 · Q57Product market: C = 300 + 0.8(Y - T), T = 200 + 0.2Y, I₀ = 300, G₀ = 400. Money market: M₀/P = 0.4Y - 200i…
Take this paper as a timed mockMore on Equilibrium and shifts in IS-LM

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Question from the CUET-PG 2026 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.