Exam 9: From the Short to the Medium Run: the Is-Lm-Pc Model

Disposable income equals

For this question,assume that the economy is initially operating at the natural level of output.A reduction in consumer confidence will cause

What is the major reason for oil price to go up in the 2000s?

Use the IS-LM-PC model to illustrate how the economy adjusts to an increase in taxes both in the short run and in the medium run.

An increase in the price of oil will cause which of the following in the medium run?

Okun's law shows that when the unemployment rate is above the natural rate,

When the policy rate increases,

When a government reduces its deficits by increasing taxes,in the short run,

In the IS-LM-PC model,investment does not depend on

What is the major reason for oil price to go up in the 1970s?

Okun's law shows that when the unemployment rate is below the natural rate,

In the IS-LM-PC model,which of the following is assumed to be exogenous?

If the output is too low,to achieve the medium run equilibrium,the central bank will

The natural rate of interest is not

The Phillips curve shows that when the unemployment rate is higher than the natural rate,

The change in the unemployment rate is approximately equal to

In the IS-LM-PC model,LM curve is

From 1970 to the mid-1990s,the relative price of crude petroleum

For this question,assume that the economy is initially operating at the natural level of output.An increase in unemployment benefits will cause

For this question,assume that the economy is initially operating at the natural level of output.A monetary expansion will cause