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      Question

      Which of the following statements is/are correct with

      reference to, Intersection of IS and LM curve corresponds to – 1.      Equilibrium in the real sector 2.      Equilibrium in the monetary sector 3.      Liquidity trap necessarily 4.      Walrasian general equilibrium
      A 1 and 3 Correct Answer Incorrect Answer
      B 1 and 2 Correct Answer Incorrect Answer
      C 2,3 and 4 Correct Answer Incorrect Answer
      D 1 and 4 Correct Answer Incorrect Answer
      E All Correct Answer Incorrect Answer

      Solution

      The intersection of IS LM curve corresponds to Equilibrium in the real or product sector and monetary sector  

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