Question 1

What are the three main markets that comprise market capitalism?

Accepted Answer

A)  the market for goods, the market for services, and the market for technology. 
B)  the market for goods, the market for services, and the market for labor. 
C)  the market for goods and services, the market for labor, and financial markets. 
D)  the market for services, the market for information, and financial markets. 
A)  the market for goods, the market for services, and the market for technology. 
B)  the market for goods, the market for services, and the market for labor. 
C)  the market for goods and services, the market for labor, and financial markets. 
D)  the market for services, the market for information, and financial markets. C

Question 2

According to conservative economists, involuntary unemployment

Accepted Answer

A)  does not exist. 
B)  should be imposed on those unwilling to work. 
C)  occurs during an economic expansion. 
D)  could be eliminated by effective government programs. 
A)  does not exist. 
B)  should be imposed on those unwilling to work. 
C)  occurs during an economic expansion. 
D)  could be eliminated by effective government programs. A

Question 3

In the neoclassical view of the macroeconomy, investment spending is

Accepted Answer

A)  unrelated to the interest rate. 
B)  inversely related to the interest rate. 
C)  positively related to the interest rate. 
D)  is completely unpredictable 
A)  unrelated to the interest rate. 
B)  inversely related to the interest rate. 
C)  positively related to the interest rate. 
D)  is completely unpredictable B

Question 4

In the neoclassical view of the macroeconomy, the supply of savings is

Accepted Answer

A)  unrelated to the interest rate. 
B)  inversely related to the interest rate. 
C)  positively related to the interest rate. 
D)  is fixed. 
A)  unrelated to the interest rate. 
B)  inversely related to the interest rate. 
C)  positively related to the interest rate. 
D)  is fixed.

Question 5

Whats defention of terms:
-Equilibrium

Accepted Answer

The answer of Whats defention of terms:
-Equilibrium...

Question 6

Name the three markets that comprise the macroeconomy and explain how traditional economists come to the conclusion that all three markets tend to be in equilibrium.
-Which neoclassical argument claims that money and interest rates react in a certain way to outside shocks so as to lead back to equilibrium?

Accepted Answer

The answer of Name the three markets that comprise the...

Question 7

Whats defention of terms:
-outside shock

Accepted Answer

The answer of Whats defention of terms:
-outside shock...

Question 8

Give a brief history of the evolution of the current traditional economic models of the ?macroeconomy.
-What is the neoclassical response to Keynes' vision of business cycles?

Accepted Answer

The answer of Give a brief history of the evolution...

Question 9

Name the three markets that comprise the macroeconomy and explain how traditional economists come to the conclusion that all three markets tend to be in equilibrium.
-Which neoclassical argument claims that employee compensation and number of employees hired react in a certain way to outside shocks so as to lead back to equilibrium?

Accepted Answer

The answer of Name the three markets that comprise the...

Question 10

Progressive economists argue that conservatives tend to blame the unemployed for their own unemployment. What does this mean?

Accepted Answer

A)  Conservatives argue that the unemployed have caused businesses to fail. 
B)  Conservatives argue that the unemployed do not pay buy enough goods and services causing the economy to go into a recession. 
C)  Conservatives argue that the unemployed are simply unwilling to work at the prevailing wage. 
D)  Conservatives argue that the unemployed have lost their jobs by being so industrious that they are no longer needed by their employers. 
A)  Conservatives argue that the unemployed have caused businesses to fail. 
B)  Conservatives argue that the unemployed do not pay buy enough goods and services causing the economy to go into a recession. 
C)  Conservatives argue that the unemployed are simply unwilling to work at the prevailing wage. 
D)  Conservatives argue that the unemployed have lost their jobs by being so industrious that they are no longer needed by their employers.

Question 11

Compare and contrast the traditional and progressive views of unemployment in the macroeconomy.
-How would conservative economists explain the high unemployment rates of the Great depression? How would progressive economists?

Accepted Answer

The answer of Compare and contrast the traditional and progressive...

Question 12

Name the three markets that comprise the macroeconomy and explain how traditional economists come to the conclusion that all three markets tend to be in equilibrium.
-Do these three arguments support or oppose Say's law?

Accepted Answer

The answer of Name the three markets that comprise the...

Question 13

Some neoclassical economists argue that recessions are caused by

Accepted Answer

A)  a deficiency of aggregate demand. 
B)  hoarding of savings. 
C)  outside shocks or disruptions. 
D)  free trade. 
A)  a deficiency of aggregate demand. 
B)  hoarding of savings. 
C)  outside shocks or disruptions. 
D)  free trade.

Question 14

Compare and contrast the traditional and progressive views of unemployment in the macroeconomy.
-What is the traditional view of involuntary unemployment?

Accepted Answer

The answer of Compare and contrast the traditional and progressive...

Question 15

Give a brief history of the evolution of the current traditional economic models of the ?macroeconomy.
-Who was Wesley Mitchell? What was his argument against Say's law?

Accepted Answer

The evolution of traditional economic mo

Question 16

Name the three markets that comprise the macroeconomy and explain how traditional economists come to the conclusion that all three markets tend to be in equilibrium.
-Which neoclassical argument claims that prices and output react in a certain way to outside shocks so as to lead back to equilibrium?

Accepted Answer

The answer of Name the three markets that comprise the...

Question 17

In the neoclassical view of the macroeconomy, a temporary lack of demand for all goods and services will lead to

Accepted Answer

A)  inflation. 
B)  a fall in the price level. 
C)  an expansion. 
D)  a recession. 
A)  inflation. 
B)  a fall in the price level. 
C)  an expansion. 
D)  a recession.

Question 18

In the neoclassical view of the macroeconomy, any income not used for consumption

Accepted Answer

A)  will be used to pay taxes. 
B)  will be used for investment. 
C)  will be used for government projects. 
D)  will be used for exports. 
A)  will be used to pay taxes. 
B)  will be used for investment. 
C)  will be used for government projects. 
D)  will be used for exports.

Question 19

In the neoclassical view of the macroeconomy, if capitalists find they are unable to sell all of their goods

Accepted Answer

A)  they will continue to produce at current levels but will reduce their prices to sell more goods. 
B)  they will maintain prices and put unsold goods into inventories. 
C)  they will cut back on production and lower prices. 
D)  they will cut back on production but maintain current prices to cover costs. 
A)  they will continue to produce at current levels but will reduce their prices to sell more goods. 
B)  they will maintain prices and put unsold goods into inventories. 
C)  they will cut back on production and lower prices. 
D)  they will cut back on production but maintain current prices to cover costs.

Question 20

In the neoclassical view of the macroeconomy, too many workers seeking work or unemployment will lead to

Accepted Answer

A)  falling wages. 
B)  rising wages. 
C)  rising interest rates. 
D)  government programs to help the unemployed. 
A)  falling wages. 
B)  rising wages. 
C)  rising interest rates. 
D)  government programs to help the unemployed.

Exam 39: Neoclassical View of Aggregate Supply and Demand

What are the three main markets that comprise market capitalism?

According to conservative economists, involuntary unemployment

In the neoclassical view of the macroeconomy, investment spending is

In the neoclassical view of the macroeconomy, the supply of savings is

Whats defention of terms: -Equilibrium

Whats defention of terms: -outside shock

Give a brief history of the evolution of the current traditional economic models of the ?macroeconomy. -What is the neoclassical response to Keynes' vision of business cycles?

Progressive economists argue that conservatives tend to blame the unemployed for their own unemployment. What does this mean?

Compare and contrast the traditional and progressive views of unemployment in the macroeconomy. -How would conservative economists explain the high unemployment rates of the Great depression? How would progressive economists?

Name the three markets that comprise the macroeconomy and explain how traditional economists come to the conclusion that all three markets tend to be in equilibrium. -Do these three arguments support or oppose Say's law?

Some neoclassical economists argue that recessions are caused by

Compare and contrast the traditional and progressive views of unemployment in the macroeconomy. -What is the traditional view of involuntary unemployment?

Give a brief history of the evolution of the current traditional economic models of the ?macroeconomy. -Who was Wesley Mitchell? What was his argument against Say's law?

In the neoclassical view of the macroeconomy, a temporary lack of demand for all goods and services will lead to

In the neoclassical view of the macroeconomy, any income not used for consumption

In the neoclassical view of the macroeconomy, if capitalists find they are unable to sell all of their goods

In the neoclassical view of the macroeconomy, too many workers seeking work or unemployment will lead to

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Slavery to Feudalism in Western Europe

Feudalism and Paternalism in England

Feudalism to Capitalism in England

Mercantilism in England

Pre-Capitalism to Industrial Capitalism in the United States 1776-1865

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Socialist Protest Against Industrial Capitalism

Marx Critique and Alternative to Capitalism

Rise of Corporate Capitalism in the United States, 1865-1900

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Veblen Critique of Corporate Capitalism

Growth and Depression in the United States, 1900-1940

Keynesian Economics and the Great Depression

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Robinson Crusoe Two Perspectives on Microeconomics

The Two Americas Inequality, Class, and Conflict

Inequality, Exploitation, and Economic Institutions

Prices, Profits, and Exploitation

Market Power and Global Corporations

Economics of Racial and Gender Discrimination

Environmental Devastation

Government and Inequality

Economic Democracy

Scarcity and Choice Neoclassical View

Simple Analytics of Supply and Demand

Consumption Theory: Demand

Production Theory Supply

Costs of Production

Work and Wages Neoclassical View of Income Distribution

Prices and Profits in Perfect Competition

Monopoly, Power, Prices, and Profits

Monopolistic Competition and Oligopoly

Market Failures Public Goods, Market Power, and Externalities

History of Business Cycles and Human Misery

National Income Accounting How to Map the Circulation of Money and Goods

Money and Profit Says Law and Institutionalist Criticism

Keynesian View of Aggregate Supply and Demand

How to Measure Instability

Consumer Spending and Labor Income

Investment Spending and Profit

The Multiplier

Business Cycles and Unemployment

Growth and Waste

Fiscal Policy

Government Spending and Taxes

Money, Banking, and Credit

Inflation

Monetary Policy

Exports and Imports

International Trade, Investment, and Finance How Instability Spreads Around the World

Debate on Globalization

Debate on Free Trade

Development

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