Exam 28: The Monetary Policy and Aggregate Demand Curves

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

When the financial crisis started in August 2007,inflation was rising and the Fed began an aggressive easing lowering of the federal funds rate,which indicated that

The upward slope of the MP curve indicates that

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

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.

Based on the Taylor Principle,a central bank's endogenous response of raising interest rates when inflation rises

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

Everything else held constant,a decrease in government spending will cause the IS curve to shift to the ________ and aggregate demand will ________.

An autonomous easing of monetary policy