Exam 27: Web 2:the Islm Model

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

If the price level increases,everything else held constant,the ________ curve shifts to the ________.

In the basic closed-economy ISLM model,the goods market can be described by the

When the IS and LM curves are combined in the same diagram,the intersection of the two curves determines the equilibrium level of ________ as well as the ________.

Using the long-run ISLM model,explain and demonstrate graphically the neutrality of money,for the case of an increase in the money supply.

In the ISLM framework,an expansionary fiscal policy causes aggregate output to ________ and the interest rate to ________,everything else held constant.

A decrease in the quantity of money supplied shifts the money supply curve to the ________,and the LM curve to the ________,everything else held constant.

As interest rates rise,the opportunity cost of holding money ________ and the demand for money ________.

Everything else held constant,if aggregate output is to the ________ of the LM curve,then there is an excess demand of money which will cause the interest rate to ________.

In the basic closed-economy ISLM model,the money market can be described by the

Which of the followings does NOT describe the money market in the ISLM model?

The situation in which expansionary fiscal policy does not lead to a rise in aggregate output is referred to as

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

Everything else held constant,a monetary contraction is characterized by ________ output and ________ interest rates.

If an economy experiences high interest rates and high unemployment,the ISLM framework predicts that ________ policy has been too ________.

In the basic closed-economy ISLM model,the LM curve can be described by an equation where

In the long-run ISLM model and with everything else held constant,the long-run effect of a contractionary fiscal policy is to ________ real output and ________ the interest rate.

If the ________ curve is relatively more unstable than the ________ curve,an interest rate target is preferred.

Everything else held constant,if aggregate output is to the left of the LM curve,then there is an excess ________ of money which will cause the interest rate to ________.