Question 1

Whats defention of terms:
-effective demand

Accepted Answer

demand when someone has both desire and money

Question 2

-Diagram 40a indicates that

Accepted Answer

A)  aggregate spending and aggregate product are the same. 
B)  aggregate spending and aggregate income are the same. 
C)  aggregate product and aggregate income are the same. 
D)  aggregate spending and equilibrium income are the same 
A)  aggregate spending and aggregate product are the same. 
B)  aggregate spending and aggregate income are the same. 
C)  aggregate product and aggregate income are the same. 
D)  aggregate spending and equilibrium income are the same C

Question 3

Explain and give examples of how a progressive view of aggregate supply and demand is completely different from the traditional view.
-Can aggregate demand suffer from "leakages" according to the traditional view? Explain.

Accepted Answer

The traditional view a lack of effective demand cannot occur Say's law claims that any level of production and income always generates an equal demand, except for a short time after an outside shock

Question 4

National or aggregate income includes

Accepted Answer

A)  profits, rent and interest income. 
B)  wages, salaries and profits. 
C)  wages, salaries, rent and interest income. 
D)  wages, salaries, rent, profits and interest income. 
A)  profits, rent and interest income. 
B)  wages, salaries and profits. 
C)  wages, salaries, rent and interest income. 
D)  wages, salaries, rent, profits and interest income.

Question 5

Conservatives and Keynesians differ on the appropriate response of the government to a recession. Which of the following is a true statement?

Accepted Answer

A)  Keynesians believe that governments should increase spending to make up for a deficiency of aggregate demand. 
B)  Keynesians believe that governments should intervene in the economy only in the case of an outside shock. 
C)  Keynesians believe that governments do not need to intervene, because the economy is always in equilibrium. 
D)  Keynesians believe that governments can prevent an outside shock. 
A)  Keynesians believe that governments should increase spending to make up for a deficiency of aggregate demand. 
B)  Keynesians believe that governments should intervene in the economy only in the case of an outside shock. 
C)  Keynesians believe that governments do not need to intervene, because the economy is always in equilibrium. 
D)  Keynesians believe that governments can prevent an outside shock.

Question 6

Describe how Keynes built an entirely new view of aggregate supply and demand in which an economy may not automatically recover from a recession.
-How does Keynes explain inflation?

Accepted Answer

The answer of Describe how Keynes built an entirely new...

Question 7

Keynes defined aggregate supply as

Accepted Answer

A)  the total dollar amount of money spent on goods and services by consumers, investors, government and net spending by foreigners at a given price level. 
B)  the total dollar amount of money spent on goods and services by consumers at a given price level. 
C)  the total output produced and offered for sale at a given price level by all economic units. 
D)  the total output produced and offered for sale at a given price level by the private sector. 
A)  the total dollar amount of money spent on goods and services by consumers, investors, government and net spending by foreigners at a given price level. 
B)  the total dollar amount of money spent on goods and services by consumers at a given price level. 
C)  the total output produced and offered for sale at a given price level by all economic units. 
D)  the total output produced and offered for sale at a given price level by the private sector.

Question 8

Wesley Mitchell made a study of business cycles and found that booms and busts

Accepted Answer

A)  occur in all types of economies. 
B)  only occur under capitalism. 
C)  were more severe in the feudal period. 
D)  occur more often in a barter system. 
A)  occur in all types of economies. 
B)  only occur under capitalism. 
C)  were more severe in the feudal period. 
D)  occur more often in a barter system.

Question 9

Keynes defined aggregate demand as

Accepted Answer

A)  the total dollar amount of money spent on goods and services by consumers, investors, government and net spending by foreigners at a given price level. 
B)  the total dollar amount of money spent on goods and services by consumers at a given price level. 
C)  the total output produced and offered for sale at a given price level by all economic units. 
D)  the total output produced and offered for sale at a given price level by the private sector. 
A)  the total dollar amount of money spent on goods and services by consumers, investors, government and net spending by foreigners at a given price level. 
B)  the total dollar amount of money spent on goods and services by consumers at a given price level. 
C)  the total output produced and offered for sale at a given price level by all economic units. 
D)  the total output produced and offered for sale at a given price level by the private sector.

Question 10

-Diagram 40a indicates that

Accepted Answer

A)  equilibrium income is above full employment. 
B)  equilibrium income is below full employment. 
C)  equilibrium income is the same as full employment. 
D)  equilibrium income is the same as aggregate spending. 
A)  equilibrium income is above full employment. 
B)  equilibrium income is below full employment. 
C)  equilibrium income is the same as full employment. 
D)  equilibrium income is the same as aggregate spending.

Question 11

Compare and contrast the arguments of critiques of classical economics and Say's law.
-How do Marx and Mitchell refute Say's law?

Accepted Answer

The answer of Compare and contrast the arguments of critiques...

Question 12

Compare and contrast the arguments of critiques of classical economics and Say's law.
-Compare and contrast Marx and Mitchell's arguments to that of Keynes.

Accepted Answer

The answer of Compare and contrast the arguments of critiques...

Question 13

At the beginning of the Great Depression

Accepted Answer

A)  neoclassical economists insisted that the government should increase spending. 
B)  neoclassical economists predicted that the economy would soon return to normal. 
C)  neoclassical economists agreed that the problem was lack of effective demand. 
D)  neoclassical economists predicted the fall of capitalism. 
A)  neoclassical economists insisted that the government should increase spending. 
B)  neoclassical economists predicted that the economy would soon return to normal. 
C)  neoclassical economists agreed that the problem was lack of effective demand. 
D)  neoclassical economists predicted the fall of capitalism.

Question 14

Explain and give examples of how a progressive view of aggregate supply and demand is completely different from the traditional view.
-What is "effective demand" according to Keynes? How can there be a lack of effective demand?

Accepted Answer

The answer of Explain and give examples of how a...

Question 15

Discuss how Keynes refuted Say's law.
-Why does aggregate spending rise more slowly than income?

Accepted Answer

The answer of Discuss how Keynes refuted Say's law.
-Why does...

Question 16

Conservatives and Keynesians differ on the appropriate response of the government to a recession. Which of the following is a true statement?

Accepted Answer

A)  Conservatives believe the economy will not recover from an outside shock without government assistance. 
B)  Conservatives believe the economy will automatically adjust to an outside shock. 
C)  Conservatives believe there is no such thing as an outside shock. 
D)  Conservatives believe that governments can prevent an outside shock. 
A)  Conservatives believe the economy will not recover from an outside shock without government assistance. 
B)  Conservatives believe the economy will automatically adjust to an outside shock. 
C)  Conservatives believe there is no such thing as an outside shock. 
D)  Conservatives believe that governments can prevent an outside shock.

Question 17

According to Keynesian economists, the problem in the Great Depression was

Accepted Answer

A)  a major outside shock. 
B)  deficit spending by the government. 
C)  a lack of effective demand. 
D)  government interfering with the natural tendency of the economy to restore equilibrium. 
A)  a major outside shock. 
B)  deficit spending by the government. 
C)  a lack of effective demand. 
D)  government interfering with the natural tendency of the economy to restore equilibrium.

Question 18

Describe how Keynes built an entirely new view of aggregate supply and demand in which an economy may not automatically recover from a recession.
-How do Keynesians counter the neoclassical argument that in a recession, falling wages and salaries will restore demand for labor to the full employment equilibrium point?

Accepted Answer

The answer of Describe how Keynes built an entirely new...

Question 19

Describe how Keynes built an entirely new view of aggregate supply and demand in which an economy may not automatically recover from a recession.
-How do Keynesians counter the neoclassical argument that, in a recession, falling prices will restore demand for goods to the full employment equilibrium point?

Accepted Answer

The answer of Describe how Keynes built an entirely new...

Question 20

The Keynesian cross diagram shows

Accepted Answer

A)  the relationship between equilibrium income and full employment. 
B)  the relationship between aggregate demand and aggregate supply. 
C)  the relationship between equilibrium demand and the price level. 
D)  the relationship between full employment and the price level. 
A)  the relationship between equilibrium income and full employment. 
B)  the relationship between aggregate demand and aggregate supply. 
C)  the relationship between equilibrium demand and the price level. 
D)  the relationship between full employment and the price level.

Exam 40: Keynesian View of Aggregate Supply and Demand

Whats defention of terms: -effective demand

-Diagram 40a indicates that

Explain and give examples of how a progressive view of aggregate supply and demand is completely different from the traditional view. -Can aggregate demand suffer from "leakages" according to the traditional view? Explain.

National or aggregate income includes

Conservatives and Keynesians differ on the appropriate response of the government to a recession. Which of the following is a true statement?

Describe how Keynes built an entirely new view of aggregate supply and demand in which an economy may not automatically recover from a recession. -How does Keynes explain inflation?

Keynes defined aggregate supply as

Wesley Mitchell made a study of business cycles and found that booms and busts

Keynes defined aggregate demand as

-Diagram 40a indicates that

Compare and contrast the arguments of critiques of classical economics and Say's law. -How do Marx and Mitchell refute Say's law?

Compare and contrast the arguments of critiques of classical economics and Say's law. -Compare and contrast Marx and Mitchell's arguments to that of Keynes.

At the beginning of the Great Depression

Explain and give examples of how a progressive view of aggregate supply and demand is completely different from the traditional view. -What is "effective demand" according to Keynes? How can there be a lack of effective demand?

Discuss how Keynes refuted Say's law. -Why does aggregate spending rise more slowly than income?

Conservatives and Keynesians differ on the appropriate response of the government to a recession. Which of the following is a true statement?

According to Keynesian economists, the problem in the Great Depression was

The Keynesian cross diagram shows

Prehistoric Communal Institutions in the Middle East

Communal Equality to Slavery in the Middle East

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

Classical Liberalism Defense of Industrial Capitalism

Socialist Protest Against Industrial Capitalism

Marx Critique and Alternative to Capitalism

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

Neoclassical Economics Defense of Corporate Capitalism

Veblen Critique of Corporate Capitalism

Growth and Depression in the United States, 1900-1940

Keynesian Economics and the Great Depression

The United States and Global Capitalism, 1940-2006

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

Neoclassical 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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