Exam 11: Classical and Keynesian Macro Analyses

Using a graph, show the effects of a weaker dollar on the economy. Explain.

What is Say's Law and what does it mean?

In a classical model,

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

-According to the above figure, what will the price level be in the new long-run equilibrium?

The discovery of new iron ore fields will cause

How does the original, simplified Keynesian model compare with modern Keynesian analysis?

The classical economists assumed that

Say's law argues that I. overproduction is typical in a market economy. II) supply creates its own demand.

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

What effect does a stronger dollar have on aggregate supply? Why?

Inflation that is caused by an increase in aggregate demand which is not matched by an increase in aggregate supply is called

All items below will decrease short-run aggregate supply EXCEPT

John Maynard Keynes developed his economic theories in the

"Supply creates its own demand" is known as

An example of an aggregate supply shock is

According to classical economists, the credit market reaches an equilibrium when

The classical model indicates that at the equilibrium interest rate , saving is

Higher unemployment tends to be associated with

In the classical model, the aggregate supply curve is