the economics of money, banking, and financial markets

695 #

© 2014 Pearson Canada Inc.#

22.5 Factors That Shift the IS Curve

1. 
   

   Other things equal, a decrease in autonomous consumption shifts the ____ curve to the
   ____.
   A) IS; right
   B) IS; left
   C) LM; left
   D) LM; right
   Answer: B
   Diff: 2 Type: MC Page Ref: 553
   Skill: Recall
   Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

   
   


2. 
   

   In the Keynesian cross diagram, a decline in autonomous consumer expenditure causes the
   aggregate demand function to shift ____ and the equilibrium level of aggregate output to
   ____, everything else held constant.
   A) up; rise
   B) up; fall
   C) down; rise
   D) down; fall
   Answer: D
   Diff: 2 Type: MC Page Ref: 553
   Skill: Recall
   Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

   
   


3. 
   

   An increase in autonomous consumer expenditure causes the aggregate demand function to
   shift ____ and the equilibrium level of aggregate output to ____, everything else held
   constant.
   A) up; rise
   B) up; fall
   C) down; rise
   D) down; fall
   Answer: A
   Diff: 2 Type: MC Page Ref: 553
   Skill: Recall
   Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output