Exam 23: The Monetary Policy and Aggregate Demand Curves

A decrease in taxes causes the IS curve to shift ________ and the aggregate demand curve to shift ________.

In the money market,a condition of excess demand for money can be eliminated by a ________ in aggregate output or a ________ in the interest rate,everything else held constant.

Which of the following statements concerning IS - MP analysis is true?

Higher inflation results from higher interest rates due to ________.

An increase in the money ________ shifts the MP curve to the ________,causing the interest rate to fall and output to rise,everything else held constant.

Based on the Taylor Principle,a central bank's endogenous response of decreasing interest rates when inflation falls ________.

Everything else held constant,an increase in net taxes will cause the IS curve to shift to the ________ and aggregate demand will ________.

List the six factors that cause both the IS and the aggregate demand curve to shift.

Everything else held constant,an increase in autonomous planned investment spending will cause the IS curve to shift to the ________ and aggregate demand will ________.

An autonomous rise in ________ shifts the MP curve to the ________,everything else held constant.

Everything else held constant,an autonomous easing of monetary policy will cause ________.

In the 1970s ,the inflation rate in Canada reach levels over ________ percent.

An increase in government purchases causes the IS curve to shift ________ and the aggregate demand curve to shift ________.

If the monetary policy rule is given by r=1.0 + 0.5p,then r represents ________.

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

Despite an expansionary monetary policy,an economy experiences a recession.Everything else held constant,the recession could occur in spite of the rightward shift of the MP curve if ________.

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.

The aggregate demand curve is downward sloping because a higher inflation rate leads the central bank to raise ________ interest rates,thereby ________ the level of equilibrium aggregate output.,everything else held constant.

An increase in autonomous consumer expenditure 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.

The Bank of Canada conducts monetary policy by ________.