Exam 27: The IS Curve

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.

Which of the following does NOT shift the IS curve?

Aggregate output is ________ related to autonomous consumer expenditure,and is ________ related to planned investment spending.

If young business professionals in America suddenly decide that driving German-made cars is an important status symbol,net exports will tend to ________ causing aggregate demand to ________,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.

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

Equilibrium output is reduced by an increase in

If unplanned investment is positive,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.

Situation 20-1 Assume a closed economy with no government.Suppose that autonomous consumption equals $400,planned investment equals $500,and the mpc equals 0.9. -Using the information in Situation 20-1,if aggregate output equals $8,000,the unplanned inventory investment equals