Exam 22: The Monetary Policy and Aggregate Demand Curves

A decline in the money ________ shifts the MP curve to the ________, causing the interest rate to rise and output to fall, everything else held constant.

A decline in autonomous planned investment spending causes the equilibrium level of aggregate output to ________ and shifts the ________ curve to the ________, everything else held constant.

If the Bank of Canada conducts open market purchases, the money supply ________, shifting the MP curve to the ________, everything else held constant.

Other things equal, a decrease in autonomous consumption shifts the ________ curve to the ________.

A decline in autonomous consumer expenditure causes the aggregate demand function to shift ________ and the equilibrium level of aggregate output to ________, everything else held constant.

If the monetary policy rule is given by r = 1.0 + 0.5p, then 0.5 represents ________.

The upward slope of the MP curve indicates that ________.

An increase 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.