Economics Ps 8

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Mar 21, 2023

Quiz Edited by
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May 13, 2012

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Economics Ps 8

In the IS-LM analysis, the increase in income resulting from a tax cut is usually ______ the increase in income resulting from an equal rise in government spending.

In the IS-LM model when M rises but P remains constant, in short-run equilibrium, in the usual case, the interest rate and output .

In the IS-LM model when M remains constant but P rises, in short-run equilibrium, in the usual case, the interest rate and output .

If the demand for real money balances does not depend on the interest rate, then the LM curve:

In the IS-LM model when the Federal Reserve decreases the money supply, people bonds and the interest rate , leading to a(n) __ in investment and income.

The monetary transmission mechanism works through the effects of changes in the money supply on:

If taxes are raised, but the Fed prevents income from falling by raising the money supply, then:

An increase in consumer saving for any given level of income will shift the:

An increase in the demand for money, at any given income level and level of interest rates, will, within the IS-LM framework, output and interest rates.

In the IS-LM model, a decrease in the interest rate would be the result of a(n):

When bond traders for the Federal Reserve seek to increase interest rates, they bonds, which shifts the curve to the left.

When bond traders for the Federal Reserve seek to decrease interest rates, they bonds, which shifts the curve to the right.

The aggregate demand curve generally slopes downward and to the right because, for any given money supply M a higher price level P causes a real money supply M/P, which the interest rate and __ spending.

Use the following to answer questions 16-18: (Exhibit: IS-LM to Aggregate Demand) Based on the graph, if LM₁ shifts to LM₂ because the price level decreases from P₁ to P₂ then, holding other factors constant:

Use the following to answer questions 16-18: (Exhibit: IS-LM to Aggregate Demand) Based on the graph, if LM₃ shifts to LM₂ because the money supply decreases from M₃ to M₂ then, holding other factors constant:

Use the following to answer questions 16-18: (Exhibit: IS-LM to Aggregate Demand) Based on the graph, which is the correct ordering of the price levels and money supplies?

A shift in the aggregate demand curve, starting from long-run equilibrium, which increases output in the short run, will ______ in the long run, as compared to a short-run equilibrium.

If the short-run IS-LM equilibrium occurs at a level of income below the natural level of output, then in the long run the price level will , shifting the curve to the right and returning output to the natural level.

The spending hypothesis suggests that the Great Depression was caused by a:

The money hypothesis suggests that the Great Depression was caused by a:

Economics Ps 8

In the IS-LM analysis, the increase in income resulting from a tax cut is usually ______ the increase in income resulting from an equal rise in government spending.

In the IS-LM model when M rises but P remains constant, in short-run equilibrium, in the usual case, the interest rate ______ and output ______.

In the IS-LM model when M remains constant but P rises, in short-run equilibrium, in the usual case, the interest rate ______ and output ______.

If the demand for real money balances does not depend on the interest rate, then the LM curve:

In the IS-LM model when the Federal Reserve decreases the money supply, people ______ bonds and the interest rate ______, leading to a(n) ______ in investment and income.

The monetary transmission mechanism works through the effects of changes in the money supply on:

If taxes are raised, but the Fed prevents income from falling by raising the money supply, then:

An increase in consumer saving for any given level of income will shift the:

An increase in the demand for money, at any given income level and level of interest rates, will, within the IS-LM framework, ______ output and ______ interest rates.

In the IS-LM model, a decrease in the interest rate would be the result of a(n):

When bond traders for the Federal Reserve seek to increase interest rates, they ______ bonds, which shifts the ______ curve to the left.

When bond traders for the Federal Reserve seek to decrease interest rates, they ______ bonds, which shifts the ______ curve to the right.

The aggregate demand curve generally slopes downward and to the right because, for any given money supply M a higher price level P causes a ______ real money supply M/P, which ______ the interest rate and ______ spending.

Use the following to answer questions 16-18: (Exhibit: IS-LM to Aggregate Demand) Based on the graph, if LM1 shifts to LM2 because the price level decreases from P1 to P2 then, holding other factors constant:

Use the following to answer questions 16-18: (Exhibit: IS-LM to Aggregate Demand) Based on the graph, if LM3 shifts to LM2 because the money supply decreases from M3 to M2 then, holding other factors constant:

Use the following to answer questions 16-18: (Exhibit: IS-LM to Aggregate Demand) Based on the graph, which is the correct ordering of the price levels and money supplies?

A shift in the aggregate demand curve, starting from long-run equilibrium, which increases output in the short run, will ______ in the long run, as compared to a short-run equilibrium.

If the short-run IS-LM equilibrium occurs at a level of income below the natural level of output, then in the long run the price level will ______, shifting the ______ curve to the right and returning output to the natural level.

The spending hypothesis suggests that the Great Depression was caused by a:

The money hypothesis suggests that the Great Depression was caused by a:

In the IS-LM model when M rises but P remains constant, in short-run equilibrium, in the usual case, the interest rate and output .

In the IS-LM model when M remains constant but P rises, in short-run equilibrium, in the usual case, the interest rate and output .

In the IS-LM model when the Federal Reserve decreases the money supply, people bonds and the interest rate , leading to a(n) __ in investment and income.

An increase in the demand for money, at any given income level and level of interest rates, will, within the IS-LM framework, output and interest rates.

When bond traders for the Federal Reserve seek to increase interest rates, they bonds, which shifts the curve to the left.

When bond traders for the Federal Reserve seek to decrease interest rates, they bonds, which shifts the curve to the right.

The aggregate demand curve generally slopes downward and to the right because, for any given money supply M a higher price level P causes a real money supply M/P, which the interest rate and __ spending.

Use the following to answer questions 16-18: (Exhibit: IS-LM to Aggregate Demand) Based on the graph, if LM₁ shifts to LM₂ because the price level decreases from P₁ to P₂ then, holding other factors constant:

Use the following to answer questions 16-18: (Exhibit: IS-LM to Aggregate Demand) Based on the graph, if LM₃ shifts to LM₂ because the money supply decreases from M₃ to M₂ then, holding other factors constant:

If the short-run IS-LM equilibrium occurs at a level of income below the natural level of output, then in the long run the price level will , shifting the curve to the right and returning output to the natural level.