Exam 5: Macroeconomic Theory and Models

IS-LM model was developed by:

The quantity theory of money was restated by:

The natural rate of unemployment equals the sum of those who are:

When saving is greater than investment in a two-sector model,

The marginal productivity of labour:

Which policy is effective in the intermediate range?

In classical theory which of the following is found in the economy:

The law which states that supply creates its own demand and overproduction is impossible is known as:

The IS curve has a ------slope

Frictional unemployment exists:

In MV=PT, if M doubles and V and T remain constant, then P will:

An Economic model is a statement of relationship among economic ------

Pigou's version of Cambridge equation is:

The equilibrium in the product market is represented by which curve?

Which policy is effective in the Classical range?

The LM curve has a ----- slope

ISLM model was developed by:

When there is an increase in the autonomous money supply, ceteris paribus, LM shifts:

LM curve shows the equilibrium condition in ---------- market

Wages and prices do not adjust quickly to restore general equilibrium is a property of