Exam 10: Classical and Keynesian Macro Analyses

Say's law implies that

An inflationary gap is the amount by which

According to the classical economists, an economy producing $15 trillion in goods and services

All of the following will cause the aggregate supply curve to shift to the right EXCEPT

In the Keynesian model in which the Keynesian short-run aggregate supply curve exists

Which of the following statements is TRUE?

Why is persistent unemployment a possibility in the Keynesian model but NOT in the classical model?

In a classical model

"Supply creates its own demand" is known as

Compare the effects of an increase in aggregate demand when the price level is fixed versus when it can change.

The exchange rate last month was $1 = 1.15 euros. This month it is $1 = 1.35 euros. We can say that the value of the dollar

Keynes argued that I. Capitalism did not always lead to full employment. II. Nominal prices were more important than relative prices.

"Supply creates its own demand" implies that

Jacob buys less soda when the price of soda rises 10 percent, while the prices of all other goods also rise 10 percent. Jacob is

Keynesian economists would likely argue that the classical model is which of the following?

According to classical economists,

Which of the following is NOT an assumption of the classical system?

Why did the classical economists think that large-scale unemployment was not possible in a market economy?

The concept that producing goods and services generates the means and the willingness to purchase other goods and services is

According to the classical model, the income generated by production is