Chapter 9

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

Fall in output in the short run.

Decrease in government purchases

Increase in output in the short run.

Decrease in taxes

Beneficial Supply Shock

FE line right

Increase in capital stock

FE line right

Increase in labour supply

FE line right

More output being produced

Full employment output increases

Rise in MPN (labor)

Full employment output increases

increase in taxes

IS curve down and left

Decrease in desired saving

IS curve up and right

Increase in expected future MPC (capital)

IS curve up and right

Increase in expected future output

IS curve up and right

Increase in wealth

IS curve up and right

Temp increase in gov't purchases

IS curve up and right

decline in taxes

IS curve up and right

decrease in effective tax rate on capital

IS curve up and right

Increase in output in the short run..

Increase in expected inflation

Decrease in expected inflation rate

Increase in money demand

Fall in output in the short run

Increase in money demand

Increases in the supply of money

LM curve shifts down and right

Decrease in the supply of money

LM curve shifts up and left

Expected inflation and real interest rate

Negative relationship

Money supply and LM curve

Negative relationship

Money supply and interest rate

Negative relationship

Money supply and output in short run

Negative relationship

Money supply and real money demand

Negative relationship

Ricardian equivalent shift

No change in IS curve

Money supply and output in the long run

Not correlated

Money supply and price level in the short run

Not correlated

AD Curve with IS + CM intersection

Positive relationship

Interest rate and IS curve

Positive relationship

Interest rate, real money demand, and LM Curve

Positive relationship

Price level and LM curve

Positive relationship

An adverse supply shock causes general equilibrium to

Shift LM curve up

If IS and LM intersect and the left of the FE line

decrease in price level, shifting LM down

Ricardian equivalent

if consumers take into account an offsetting future tax cut and do not change consumption

Increase in output in the short run

increase in money supply

If IS and LM intersect and the right of the FE line

increase in price level, shifting LM up

Tempe adverse supply shock (price levels)

increases

Tempe adverse supply shock (real interest rate)

increases

Rise in interest rates

money demand rises

Tempe adverse supply shock (investment)

reduces

Tempe adverse supply shock (national saving)

reduces

Tempe adverse supply shock (output)

reduces

What factors shift AD

same factors that shift IS curve and LM curve

Temp adverse supply shock initially

shifts FE line to the left

A permanent supply shock

shifts IS curve plus the curves shifted by the temporary shock


Kaugnay na mga set ng pag-aaral

PEDS: Practice Questions (Exam 3)

View Set

NOBCChE Science Bowl: MATH Set 5

View Set

English Composition-Grammar, Mechanics, and Writing Skills Exam Study Guide

View Set

LETC Week 9 - Suicide awareness and prevention

View Set

FIN206 Topic 2: Portfolio management theory revisited

View Set

Mental health questions (ch 6, 7, 8) exam 1

View Set

Algebra 2B - Unit One: Exponential and Logarithmic Functions, Part 1

View Set