Exam 23: The Monetary Policy and Aggregate Demand Curves

An increase in spending that results from expansionary ________ policy causes the interest rate to ________,everything else held constant.

If the Bank of Canada conducts open market ________,the money supply ________,shifting the MP curve to the left,everything else held constant.

An increase in the money supply,other things equal,shifts the ________ curve to the ________.

Describe monetary easing at the Bank of Canada during the 2007-2009 Financial Crisis.

Explain the difference between autonomous changes in monetary policy and the Taylor principle.

A decline in autonomous consumer expenditure causes the aggregate demand function to shift down,the equilibrium level of aggregate output to ________,and the IS curve to shift to the ________,everything else held constant.

Suppose the aggregate demand curve is given by Y= 12 - r then,if inflation increases by 1 percent ________.

An increase in autonomous investment spending causes the IS curve to shift ________ and the aggregate demand curve to shift ________.

Using the IS - MP model,explain the effects of a monetary expansion combined with a fiscal contraction.How do the equilibrium level of output and interest rate change?

If the central bank did not follow the Taylor principle ________.