Classify the statements as information relating to the IS curve, the LM curve, or both. Each term may be used more than once.

Classify the statements as information relating to the IS curve, the LM curve, or both. Each term may be used more than once. Statement 1: If government purchases (G) increases, the curve will shift to the right (an outward Shift). \"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\"\" 5 Statement 2: The curve shows the relationship between ---------------------------- g aggregate output, i.e. aggregate income (Y) and interest rates (I). --------------------------- Statement 3: If money supply increases, the curve will shift g --------------------------- to the right (an outward shift). Statement 4: The effect of a shift in the money demand curve, which causes a change in the interest rate (r) can be reected ----------------------------- in the curve. Statement 5: The interaction of these curves can provide the