Exam 22: The Is Curve

If net exports increase by 100 and the mpc is 0.75,equilibrium aggregate output increases by ________.

Points on the IS curve satisfy ________ market equilibrium.

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

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

The negative relation between investment spending and the interest rate is what gives the ________ curve its ________ slope.

Keynes was especially concerned with explaining the ________ level of output and employment during the ________.

Which of the following does not shift the IS curve?

An increase in unplanned inventory investment for the entire economy equals the excess of ________.

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.

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.

Everything else held constant,if aggregate output is to the left of the IS curve,then there is an excess ________ of goods which will cause aggregate output to ________.

Keynes's motivation in developing the aggregate output determination model stemmed from his concern with explaining ________.

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

Using the information in situation 20-2,if government increases their spending by $50 and increases net taxes by 50,then equilibrium aggregate output will change by ________.

What do economists mean by the word "investment"?

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.

Everything else held constant,if aggregate output is to the ________ of the IS curve,then there is an excess demand of goods which will cause aggregate output to ________.

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

An increase in investment spending because companies become more optimistic about investment profitability causes the aggregate demand function to shift up,the equilibrium level of aggregate output to ________,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 raise production,and output will continue to rise.