Exam 24: Linking the Financial System and the Economy: the Is-Lm-Fe Model

In a large open economy, an increase in government spending will lead in the long run to

Analyze the effect of the rise of retailing on the Internet in terms of the long-run equilibrium in the IS-LM-FE model.

Many economists believe that changes in the money supply

Economists generally believe that prices are

In a large open economy, an increase in productivity will lead in the long run to

Which of the following would NOT cause the IS curve to shift to the left?

In macroeconomic models, Y stands for

In the long run, a permanent increase in government spending will

An increase in the price level

Suppose that computer hackers are able to steal the credit card numbers of a large number of people from the Internet. How is the LM curve likely to respond if the money supply doesn't change?

If government purchases decrease, the IS curve will

In general equilibrium, an increase in the money supply leads to

Which of the following will NOT cause the LM curve to shift?

Purchases and sales of stocks, bonds, and houses take place

In a closed economy, if the goods market is in equilibrium, national saving is $2 trillion, national consumption is $7 trillion, and government purchases are $2.5 trillion, then GDP equals

At a point above the IS curve,

At a point above the LM curve,

Which of the following would NOT cause a shift in the IS curve?

Which of the following is NOT a key factor in determining household saving?

In a closed economy, the total quantity of goods demanded equals the sum of