Exam 34: The Influence of Monetary and Fiscal Policy on Aggregate Demand

There is an increase in government expenditures financed by taxes and its overall short-run effect on output is larger than the change in government spending.Which of the following is correct?

Which of the following is not a reason the aggregate-demand curve slopes downward? As the price level increases,

On the graph that depicts the theory of liquidity preference,

According to the theory of liquidity preference,if output increases

Figure 21-5.On the figure,MS represents money supply and MD represents money demand. -Refer to Figure 21-5.A shift of the money-demand curve from MD₂ to MD₁ is consistent with which of the following sets of events?

In the short run,open-market sales

A policy that results in slow and steady growth of the money supply is an example of

The additional shifts in aggregate demand that result when there is an increase in government spending is know as the _____.

The interest rate falls if

Which of the following is not an automatic stabilizer?

Other things the same,during recessions taxes tend to

Which U.S.president,when asked why he had proposed a tax cut,responded by saying "To stimulate the economy.Don't you remember your Economics 101?"

Scenario 21-1.Take the following information as given for a small,imaginary economy: -Refer to Scenario 21-1.The multiplier for this economy is

If the MPC = 0.85,then the government purchases multiplier is about

Which of the following tends to make aggregate demand shift further to the right than the amount by which government expenditures increase?

If the Federal Reserve's goal is to stabilize aggregate demand,then in response to an increase in money demand,the Federal Reserve will _____ the money supply.

Unemployment insurance benefits are an example of _____.

When the Federal Reserve decreases the Federal Funds target rate,the lower rate is achieved through

If taxes

Shifts in aggregate demand affect the price level in