the economics of money, banking, and financial markets

696 #

© 2014 Pearson Canada Inc.#

4. 
   

   An increase in autonomous consumer expenditure causes the aggregate demand function to
   shift ____, the equilibrium level of aggregate output to rise, and the IS curve to shift to the
   ____, everything else held constant.
   A) up; left
   B) up; right
   C) down; left
   D) down; 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

   
   


5. 
   

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

   
   


6. 
   

   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: 2 Type: MC Page Ref: 553
   Skill: Recall
   Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

   
   


7. 
   

   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: 2 Type: MC Page Ref: 553
   Skill: Recall
   Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output