Exam 11: Classical and Keynesian Macro Analyses

According to Say's law,

Suppose the Japanese yen increases in its value relative to the U.S. dollar. In the U.S. economy,

The Keynesian short-run aggregate supply curve is demonstrated graphically as a

In the classical model, the aggregate supply curve is

Suppose Paris thinks a 5 percent increase in her hourly wage as an incentive to work more hours while the price level also increases by 5 percent. Paris is said to be suffering from

Keynesian economists argue that

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

Say's law says that

"In the classical model, the equilibrium level of real Gross Domestic Product (GDP) is completely supply-determined." Do you agree or disagree? Why?

The concept of Say's law can be summed up by the phrase,

Suppose the U.S. dollar gains strength against the euro (and against other major currencies). This strengthening of the dollar will cause which of the following to occur?

The Keynesian short-run aggregate supply (SRAS) curve

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

-In the above figure, an increase in aggregate demand has resulted in

Economic growth will NOT result in deflation if aggregate demand shifts

At higher rates of interest,

An appreciation of the U.S. dollar ________ the price of U.S. imports, and ________ the price of U.S. exports.

According to the classical model, more saving leads to more investment because

Which of the following will NOT shift the Keynesian short-run aggregate supply curve?

An upward sloping short-run aggregate supply curve suggests that