Economics · Macroeconomics
Given below are two statements, one labeled as Assertion (A) and the other as Reason (R): Assertion (A): In an IS-LM model, an increase in output at a constant rate of interest can be achieved using a tax cut policy mixed with an expansionary monetary policy. Reason (R): The IS curve is downward sloping because goods market equilibrium implies that an increase in taxes leads to a lower level of output. Select the correct alternative:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Both (A) and (R) are true but (R) is NOT the correct explanation of (A)✓
- 2Both (A) and (R) are true and (R) is the correct explanation of (A)
- 3(R) is true but (A) is false
- 4(A) is true but (R) is false
Correct answer
Both (A) and (R) are true but (R) is NOT the correct explanation of (A)
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Economics?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Macroeconomics MCQs →Want more practice questions on Macroeconomics?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Macroeconomics