the economics of money, banking, and financial markets

725 $

© 2014 Pearson Canada Inc.$

25. 
    

    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.
    A) rise; left
    B) rise; right
    C) fall; left
    D) fall; right
    Answer: C
    Diff: 1 Type: MC Page Ref: 564
    Skill: Recall
    Objective List: 23.1 Apply the IS-MP framework for the determination of aggregate output and
    the interest rate

    
    


26. 
    

    An increase in autonomous consumer expenditure causes the aggregate demand function to
    shift up, the equilibrium level of aggregate output to ____, and the IS curve to shift to the
    ____, everything else held constant.
    A) rise; left
    B) rise; right
    C) fall; left
    D) fall; right
    Answer: B
    Diff: 1 Type: MC Page Ref: 564
    Skill: Recall
    Objective List: 23.1 Apply the IS-MP framework for the determination of aggregate output and
    the interest rate

    
    


27. 
    

    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.
    A) rise; MP; right
    B) rise; IS; right
    C) fall; MP; left
    D) fall; IS; left
    Answer: B
    Diff: 2 Type: MC Page Ref: 564
    Skill: Recall
    Objective List: 23.1 Apply the IS-MP framework for the determination of aggregate output and
    the interest rate