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Using the model of liquidity preference, an increase in the demand for money will result in an increase in the interest rate. 

If the marginal propensity to consume (MPC) is 35{“version”:”1.1″,”math”:”35″}, then the spending multiplier is

Consider the following aggregate demand and aggregate supply picture. Suppose the economy starts at point C. An adverse weather event would move the economy to which point in the short-run? 

Consider an economy in recession. Suppose that the government chooses to do nothing to try to get the economy out of the recession. The recession will still end as firms adjust their expectations about the future price level. 

In the national income identity, Y = C + I + G + NX, the I stands for innovation. 

Economists refer to fluctuations in output as the “business cycle” because movements in output are regular and predictable.

The long-run aggregate supply curve shifts to the right if 

Consider the following aggregate demand and aggregate supply picture. Suppose the economy starts at point C. An increase in the money supply would move the economy to which point in the short-run? 

Consider the following picture of the money market (this is the model of liquidity preference).  There is excess money demand at an interest rate of 

Aggregate demand can be represented by the National Income Identity: Y=C+I+G+NX{“version”:”1.1″,”math”:”Y=C+I+G+NX”}