Exam 20: The Is Curve

If unplanned investment is negative,firms will ________ production and output will ________.

If the consumption function is C = 20 + 0.5Y_D,then an increase in disposable income by $100 will result in an increase in consumer expenditure by

If the consumption function is expressed as C = a + mpc × Y_D,then "mpc" represents

A decrease in autonomous planned investment spending,other things equal,shifts the ________ curve to the ________.

A reduction in government spending causes the equilibrium level of aggregate output to ________ at any given interest rate and shifts the ________ curve to the ________,everything else held constant.

Using the information in Situation 20-1,if aggregate output equals $8,000,the unplanned inventory investment equals

Points on the IS curve satisfy ________ market equilibrium.

Using the information in Situation 20-1,if aggregate output is equal to $10,000,then unplanned inventory investment equals

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

In the Keynesian cross diagram,a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift down,the equilibrium level of aggregate output to ________,and the IS curve to shift to the ________,everything else held constant.

In the Keynesian cross diagram,a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift ________ and the equilibrium level of aggregate output to ________,everything else held constant.

In the Keynesian cross diagram,an increase in investment spending because companies become more optimistic about investment profitability 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.

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

A depreciation of the U.S.dollar makes American goods cheaper relative to foreign goods,resulting in a ________ in net exports in the U.S.and a ________ shift of the IS curve in the U.S.,everything else held constant.

If actual output is greater than equilibrium output,firms will ________ output to keep from ________ inventories.

Everything else held constant,if disposable income increases by 200 and consumption expenditure increases by 150,the mpc is

A shift in tastes toward foreign goods ________ net exports in the U.S.and causes the quantity of aggregate output demanded to ________ in the U.S.,everything else held constant.

A fall in inventories is synonymous with ________ investment.

Aggregate output is ________ related to autonomous consumer expenditure,and is ________ related to planned investment spending.

If the consumption function is expressed as C = a + mpc × Y_D,then "a" represents