Exam 20: The Is Curve

In a closed economy,aggregate demand is the sum of

The IS curve shifts to the left when

Everything else held constant,if aggregate output is to the ________ of the IS curve,then there is an excess supply of goods which will cause aggregate output to ________.

If net exports decrease by 250 and the mpc is 0.75,equilibrium aggregate output

If aggregate demand falls short of current output,business firms will ________ production to ________ inventories.

In an open economy,aggregate demand is the sum of

Everything else held constant,if aggregate output is to the ________ of the IS curve,then there is an excess ________ of goods which will cause aggregate output to rise.

Aggregate output is ________ related to autonomous consumer expenditure,and is ________ related to the level of taxes.

In the Keynesian cross diagram,an increase in autonomous consumer expenditure causes the aggregate demand function to shift ________,the equilibrium level of aggregate output to rise,and the IS curve to shift to the ________,everything else held constant.

Keynes was especially concerned with explaining the

In the Keynesian model of income determination,consumer expenditure includes spending by

If the consumption function is expressed as C = a + mpc × YD,then "a" represents

Everything else held constant,if consumption expenditure falls by 160 when disposable income falls by 200,the mpc is

If unplanned investment is positive,firms will ________ production and output will ________.

If aggregate demand is less than the level of aggregate output,then ________ inventory investment will be ________.

When interest rates fall in the United States (with the price level fixed),the value of the dollar ________,domestic goods become ________ expensive,and net exports ________.

In the simple Keynesian model,equilibrium aggregate output is determined by

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.

In the Keynesian cross diagram,a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift ________ and the equilibrium level of aggregate output to ________,everything else held constant.

Keynes mentioned two factors that influenced planned investment spending: