there is an excess supply of goods equal to YY

desired demand (YC) is lower than output (YB) and inventories of unsold goods will accumulate.

desired demand (DD) will shift vertically upward to pass through point B for goods market equilibrium

The government budget will be in surplus and equal to BC

the difference (Y-Y) divided by the difference (DD- DD).

the length of the segment BA divided by the difference (Y-Y).

the difference (Y-Y) divided by the difference (G- G).

the slope of IS

(A) interest rates; (B) the real money stock; (C) monetary targeting

(A) inflation; (B) interest rates; (C) inflation targeting

(A) real GDP; (B) interest rates; (C) the monetary policy

(A) inflation; (B) real GDP (C) the monetary policy

the Keynesian assumption.

the classical dichotomy

sticky prices

the Taylor rule

the real money supply adjusts, changing interest rates to bring about the match between output and demand

output adjusts to demand

exogenous disturbances induce spending multiplier effects

collective bargaining adjusts the real wage to bring about full-employment