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Questions › IIT JAM › IIT JAM 2025 › Q34
2 marksMacroeconomics › IS-LM model › Deriving the IS curveHardabout 3 min

IIT JAM 2025 Question 34: IS-LM model

Which of the following is/are the shock(s) to the IS curve?

(A) Changes in the demand for consumer goods.

(B) Self-fulfilling waves of optimism and pessimism of the agents in the economy.

(C) Exogenous changes in the demand for money.

(D) Changes in the government purchases.

Select all that apply.

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 Deriving the IS curve, part of IS-LM model in Macroeconomics.

How the goods market gives a downward-sloping relation between the interest rate and income.

TestStop has 15 past-paper questions on this subtopic; the nearest in year are below.

  • IIT JAM 2021 · Q1When the expected future marginal product of capital increases, then the IS curve
Take this paper as a timed mockMore on Deriving the IS curve

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