EDG & ESG

Question 1

the right of the IS curve there is

Answer 1

excess supply of goods (ESG)

Question 2

to the left of the IS curve

Answer 2

excess demand of goods (EDG)

Question 3

excess supply of goods (ESG)

Answer 3

when aggregate output exceeds aggregate demand,

Question 4

Y > C + I

Answer 4

excess supply of goods (ESG)

Question 5

excess demand for goods (EDG)

Answer 5

when aggregate demand exceeds the aggregate output

Question 6

C + I > Y

Answer 6

excess demand for goods (EDG)

Question 7

The IS curve slopes depends on

Answer 7

saving function and investment function

Question 8

The IS curve will be relatively steep (flat) if ______

Answer 8

investment is less (more) sensitive to interest rate changes

Question 9

The IS curve will be vertical if ______

Answer 9

Investment is absolutely interest-inelastic

Question 10

An autonomous increase in investment expenditure or government expenditure will shift the IS curve____

Answer 10

to the right

Question 11

Aggregate Expenditure is interchangeable with

Answer 11

Aggregate Demand