11) Factors that shift the AD Curve include ________. A) autonomous net exports B) autonomous inflation C) autonomous interest rates D) all of the above E) none of the above 12) If people begin to generally feel better about the future ________. A) autonomous consumption should rise B) autonomous investment should rise C) the AD curve will shift to the right D) all of the above E) none of the above 13) If government cuts taxes ________. A) after tax income should increase shifting AD to the left to a lower equilibrium level of output B) after tax income should increase shifting AD to the right to a higher equilibrium level of output C) after tax income and the equilibrium level of output remain unchanged D) after tax income remains unchanged but the equilibrium level of output would increase E) none of the above 14) An increase in autonomous spending leads to higher ________. A) inflation B) output C) real interest rate D) all of the above E) none of the above 15) An increase in inflation leads to higher ________. A) output B) spending C) real interest rate D) all of the above E) none of the above 16) A change in inflation leads to shifts of the ________ curves. A) MP, IS, & AD B) MP & IS, but not AD C) IS & AD, but not MP D) MP, but not IS nor AD E) none of the above 17) If the Federal Reserve raises interest rates in an autonomous tightening ________ . A) the MP curve shifts up, there is an upward movement along the IS curve, and the AD curve shifts to the left to a lower level of equilibrium output B) the MP curve shifts down, there is a downward movement along the IS curve and the AD curve shifts to the right to a higher level of equilibrium output C) the MP curve shifts up, there is a downward movement along the IS curve and the AD curve shifts to the right to a lower level of equilibrium output D) the MP curve shifts down, there is an upward movement along the IS curve and the AD curve shifts to the left to a higher level of equilibrium output E) none of the above 18) If the Federal Reserve raises interest rates in an autonomous tightening ________ . A) the MP curve shifts up, raising the real interest for any given level of the inflation rate B) there is an upward movement along the IS curve C) the AD curve shifts to the left D) all of the above E) none of the above 19) Shifts of the ________ curves result from autonomous monetary policy. A) MP, IS, & AD B) MP & IS, but not AD C) IS & AD, but not MP D) MP, but not IS nor AD E) none of the above 20) The IS curve is Y = 20 – 1.5r, and the aggregate demand curve is Y = 15.5 – 0.3Ï€. The monetary policy curve is ________. A) r = 4.5 – 1.8Ï€ B) r = 20 + 0.3Ï€ C) r = 3 + 0.2Ï€ D) Y = 17.75 + 0.6Ï€ E) none of the above