Econ 101: Intermediate Macroeconomics Lecture 10 Quiz

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In the IS-LM model, what does the LM curve represent?

What happens to the equilibrium in the IS-LM model when there's an increase in government purchases?

How can the IS-LM model be used to analyze the effects of a tax cut?

What is the unique combination determined by the intersection of the IS and LM curves in the IS-LM model?

How can the IS-LM model be used to analyze the impact of monetary policy?

What happens to income and interest rate as a result of an increase in money supply, according to the IS-LM model?

In response to an increase in government spending, if the central bank holds the money supply constant, what happens to income and the interest rate?

If the central bank decides to hold the interest rate constant in response to an increase in government spending, what happens to the money supply, income, and the impact compared to holding money supply constant?

What are IS shocks in the IS-LM model?

According to the IS-LM model, what happens when consumers use cash in transactions more frequently due to an increase in identity theft?

In the IS-LM model, when analyzing the effects of a tax cut, what happens to the LM curve?

If there is a decrease in government purchases in the IS-LM model, what happens to the equilibrium in the short run?

When analyzing the impact of monetary policy using the IS-LM model, what happens if the central bank decreases the money supply?

If there's an increase in government purchases and the central bank holds the money supply constant in response, what happens to income and interest rate?

What happens to income and interest rate if there's a simultaneous increase in government purchases and money supply in the IS-LM model?

In the IS-LM model, what happens to income and the interest rate as a result of a housing market crash that reduces consumers' wealth?

How does the IS-LM model predict the effects of consumers using cash in transactions more frequently in response to an increase in identity theft?

What is the impact of holding the money supply constant in response to an increase in government spending, according to the IS-LM model?

If the central bank holds the interest rate constant in response to an increase in government spending, what happens to income and the money supply, compared to holding 𝑴 constant?

What is the effect of an increase in 𝑮 on income and the interest rate if the central bank holds 𝒓 constant?

Description

Test your knowledge on Aggregate Demand, the IS-LM model, short run equilibrium, policy analysis, and shocks in the IS-LM model. Explore the equilibrium in the short run, the IS-LM curve, and the IS-LM model in relation to Aggregate Demand and Aggregate Supply (AD-AS).

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