the economics of money, banking, and financial markets

692 #

© 2014 Pearson Canada Inc.#

9. 
   

   Points on the IS curve satisfy ____ market equilibrium.
   A) money
   B) goods
   C) stock
   D) bond
   Answer: B
   Diff: 2 Type: MC Page Ref: 547
   Skill: Recall
   Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

   
   


10. 
    

    The ____ traces out the points for which total quantity of goods produced equals total
    quantity of goods demanded.
    A) LM curve
    B) IS curve
    C) consumption function
    D) investment schedule
    Answer: B
    Diff: 2 Type: MC Page Ref: 547
    Skill: Recall
    Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

    
    


11. 
    

    The ____ describes points for which the goods market is in equilibrium.
    A) LM curve
    B) IS curve
    C) consumption function
    D) investment schedule
    Answer: B
    Diff: 2 Type: MC Page Ref: 547
    Skill: Recall
    Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

    
    


12. 
    

    Everything else held constant, if aggregate output is to the right of the IS curve, then there is
    an excess ____ of goods which will cause aggregate output to ____.
    A) supply; fall
    B) supply; rise
    C) demand; fall
    D) demand; rise
    Answer: A
    Diff: 2 Type: MC Page Ref: 548
    Skill: Recall
    Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output