Exam 22: The Is Curve

His analysis started with the recognition that the total quantity demanded of an economy's output was the sum of four types of spending: consumer expenditure,planned investment spending,government spending,and net exports.

Aggregate demand in an economy with no government or foreign trade is ________.

Everything else held constant,if disposable income increases by 200 and consumption expenditure increases by 150,the mpc is ________.

Using the information in Situation 20-1,if aggregate output equals $8,000,the unplanned inventory investment equals ________.

Keynes reasoned that consumer expenditure is most closely related to ________.

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

Using the information in Situation 20-1,the equilibrium level of aggregate output is ________.

Aggregate output is ________ related to autonomous consumer expenditure,and is ________ related to the level of taxes.

What is the role of the government,according to Keynes,in stimulating the economy,raising aggregate output and reducing unemployment when the economy is in a recession?

Everything else held constant,if consumption expenditure increases by 65 for a 100 increase in disposable income,the mpc is ________.

An autonomous appreciation of the Canadian dollar makes Canadian goods ________ expensive relative to foreign goods which ________ net exports in Canada.

Planned investment spending,a component of aggregate demand,is equal to ________.

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

What is the marginal propensity to consume according to Keynes's consumption theory? provide an example.

Using the information in Situation 20-2,if taxes increase by $10,then the equilibrium aggregate output will change by ________.

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

If net exports increase by 250 and the mpc is 0.75,equilibrium aggregate output increases by ________.

Planned investment spending is higher ________.

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