Question 1

An increase in aggregate demand will tend to cause which of the following?

Accepted Answer

A) a deflationary gap 
B) a recessionary gap 
C) cost-push inflation 
D) none of the above 
A) a deflationary gap 
B) a recessionary gap 
C) cost-push inflation 
D) none of the above

Question 2

When the value of the dollar decreases, the net effect on the economy

Accepted Answer

A) will be an increase in short-run aggregate supply and a decrease in aggregate demand. 
B) will be decrease in short-run aggregate supply and an increase in aggregate demand. 
C) will be an increase in both aggregate demand and aggregate supply. 
D) will be a decrease in both aggregate demand and aggregate supply. 
A) will be an increase in short-run aggregate supply and a decrease in aggregate demand. 
B) will be decrease in short-run aggregate supply and an increase in aggregate demand. 
C) will be an increase in both aggregate demand and aggregate supply. 
D) will be a decrease in both aggregate demand and aggregate supply.

Question 3

Classical economists tend to

Accepted Answer

A) see unemployment as a persistent economic problem. 
B) believe in Keynesian economics. 
C) reject the equality of savings and investment. 
D) support Say's law. 
A) see unemployment as a persistent economic problem. 
B) believe in Keynesian economics. 
C) reject the equality of savings and investment. 
D) support Say's law.

Question 4

If we observe an increase in real GDP and an increase in the price level after an increase in aggregate demand, we can conclude that

Accepted Answer

A) the aggregate supply curve is upward sloping. 
B) the aggregate supply curve is horizontal. 
C) the aggregate supply curve is vertical. 
D) the economy is now at full employment. 
A) the aggregate supply curve is upward sloping. 
B) the aggregate supply curve is horizontal. 
C) the aggregate supply curve is vertical. 
D) the economy is now at full employment.

Question 5

Q: How many economists does it take to change a light bulb?
A: All. Because then you will generate employment, more consumption, moving the aggregate demand curve to the right.
This joke represents the view of

Accepted Answer

A) classical economists. 
B) Keynesian economists. 
C) economists who contend that money illusion never occurs. 
D) economists who conclude that wages and prices are very flexible. 
A) classical economists. 
B) Keynesian economists. 
C) economists who contend that money illusion never occurs. 
D) economists who conclude that wages and prices are very flexible.

An increase in aggregate demand will tend to cause which of the following?

When the value of the dollar decreases, the net effect on the economy

Classical economists tend to

If we observe an increase in real GDP and an increase in the price level after an increase in aggregate demand, we can conclude that

Q: How many economists does it take to change a light bulb? A: All. Because then you will generate employment, more consumption, moving the aggregate demand curve to the right. This joke represents the view of

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

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Exam 10: Classical and Keynesian Macro Analyses

An increase in aggregate demand will tend to cause which of the following?

When the value of the dollar decreases, the net effect on the economy

Classical economists tend to

If we observe an increase in real GDP and an increase in the price level after an increase in aggregate demand, we can conclude that

Q: How many economists does it take to change a light bulb? A: All. Because then you will generate employment, more consumption, moving the aggregate demand curve to the right. This joke represents the view of

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters