Consider the following statements about the IS-LM model:
- The IS curve represents equilibrium in the goods market.
- The LM curve represents equilibrium in the money market.
- The intersection of the IS and LM curves determines the general price level.
Which of the above statements are correct?
1
1 and 2 only
2
2 and 3 only
3
1 and 3 only
4
3 only
5
1, 2, and 3