Exam 22: The Is Curve

What types of investment exist according to Keynes's theory of the determination of aggregate output? what is a major difference between the two according to Keynes?

Keynes was especially concerned with explaining the ________.

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

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.

If the consumption function is C = 20 + 0.8YD,then an increase in disposable income by $100 will result in an increase in consumer expenditure by ________.

What are the factors that can shift the IS curve to the right?

Everything else held constant,if total consumption increases from $600 to $800 because of an increase of disposable income of $400,then the mpc is equal to ________.

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 ________.

The Keynesian framework indicates that government can play an important role in determining aggregate output by ________.

An increase 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.

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.

Assume that disposable income equals $1000 and the mpc equals 0.6.If total consumption equal $800,then autonomous consumption is equal to ________.

Factors that influenced planned investment spending include ________.

An appreciation of the Canadian dollar makes foreign goods cheaper relative to Canadian goods,resulting in a ________ in net exports in Canada and a ________ shift of the IS curve in Canada,everything else held constant.

When the level of unplanned inventory investment is equal to zero,the economy is ________.

Keynes was especially interested in explaining movements of ________ because he wanted to explain why the Great Depression had occurred and how government policy could be used to increase ________ in a similar economic situation.

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.

An increase in interest rates ________.

When interest rates rise in the United States (with the price level fixed),the value of the dollar ________,domestic goods become ________ expensive,and net exports ________.

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