Exam 20: The Is Curve

A shift in tastes toward foreign goods ________ net exports in the U.S.and causes the IS curve to shift to the ________ in the U.S.,everything else held constant.

A decrease in autonomous consumer expenditure causes the equilibrium level of aggregate output to ________ at any given interest rate and shifts the ________ curve to the ________,everything else held constant.

Everything else held constant,if aggregate output is to the ________ of the IS curve,then there is an excess ________ of goods which will cause aggregate output to rise.

If net exports decrease by 250 and the mpc is 0.75,equilibrium aggregate output

In the Keynesian cross diagram,an increase in autonomous consumer expenditure causes the aggregate demand function to shift ________,the equilibrium level of aggregate output to rise,and the IS curve to shift to the ________,everything else held constant.

Everything else held constant,if aggregate output is to the ________ of the IS curve,then there is an excess supply of goods which will cause aggregate output to ________.

Everything else held constant,if aggregate output is to the right of the IS curve,then there is an excess ________ of goods which will cause aggregate output to ________.

Using the information in Situation 20-1,the equilibrium level of aggregate output is

Aggregate output is increased by a decrease in

A decline in taxes ________ consumer expenditure and shifts the ________ curve to the ________,everything else held constant.

If the interest rate falls,other things being equal,investment spending will

An autonomous depreciation of the U.S.dollar makes American goods ________ relative to foreign goods and results in a ________ in U.S.net exports,everything else held constant.

A tax increase ________ disposable income,________ consumption expenditure,and shifts the IS curve to the ________,everything else held constant.

Keynes mentioned two factors that influenced planned investment spending:

Keynes's motivation in developing the aggregate output determination model stemmed from his concern with explaining

Assume equilibrium at full employment for an economy characterized by the simple Keynesian model.If the government raises taxes to eliminate a budget deficit,then

In the simple Keynesian model,equilibrium aggregate output is determined by

Everything else held constant,if consumption expenditure falls by 160 when disposable income falls by 200,the mpc is

In the Keynesian framework,as long as output is below the equilibrium level,unplanned inventory investment will remain negative,firms will continue to ________ production,and output will continue to ________.

The IS curve shifts to the left when