Exam 8: Keynesian System Iv: Aggregate Supply and Demand

In the Keynesian model with a variable money wage and variable price level,an increase in the money supply lead to a rise in all of the following except

An increase in price expectations in the Keynesian model will shift

Assuming that as a result of observed past increases in the aggregate price level,workers' expectation of the current price level rises.Then,

According to Keynesian theory,the profit-maximizing firm demands labor up to the point at which

The Keynesian model differs from the classical model in that

If interest rates,prices,and output are all rising,then according to the Keynesian model,these changes must be caused by

Cite the difference(s)between the classical and Keynesian aggregate demand schedules.What things shift aggregate demand in the classical model? What things shift aggregate demand in the Keynesian model?

According to the contract theory of wages,firms and workers agree on a contract that fixes

The Keynesian AD curve differs from the classical AD curve in that:

In the Keynesian theory of labor supply,price expectations are based

According to Keynes' fixed money wage theory,when the price level is higher than expected the real wage is ____ than expected and unemployment is ______ than expected.

An increase in the expected price level will

Which of the following statements is correct?

What happened to the price level,money wages,real wages,and unemployment during the Great Depression? How would you explain these observations in the Keynesian model? In the Classical model?

According to the Keynesians,labor contracts

In the Keynesian model with a fixed money wage but a flexible price level,an increase in taxes will lower

An increase in the expected price level lead to

All of the following will shift the AD curve to the right except a(n):

According to Keynes,money wages

The Keynesian aggregate demand curve slopes downward because for any given money supply,an increase in the price level ______ real money holdings which _____ the interest rate and _____ income.