Exhibit 10-1 -Refer to Exhibit 10-1.At Q1,

A) TE > TP,and there are decreases in inventory. B) TP > TE,and there are increases in inventory. C) TE = TP,and there are no changes in inventory. D) TE > TP,and there are increases in inventory. A) TE > TP,and there are decreases in inventory. B) TP > TE,and there are increases in inventory. C) TE = TP,and there are no changes in inventory. D) TE > TP,and there are increases in inventory.

Here is a consumption function: C = C0 + MPC(Yd).Which of the following is true about the consumption function?

A) Consumption will rise if autonomous consumption or disposable income rise. B) Consumption will fall if autonomous consumption falls or if the MPC rises. C) Consumption will rise if autonomous consumption rises,MPC declines,or disposable income rises. D) For every $1 rise in autonomous consumption,consumption will also rise by $1. E) a and d A) Consumption will rise if autonomous consumption or disposable income rise. B) Consumption will fall if autonomous consumption falls or if the MPC rises. C) Consumption will rise if autonomous consumption rises,MPC declines,or disposable income rises. D) For every $1 rise in autonomous consumption,consumption will also rise by $1. E) a and d

Exam 10: Keynesian Macroeconomics and Economic Instability: a Critique of the Self-Regulating Economy

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Government purchases rise by $100 billion and the MPC equals 0.75.Assuming that idle resources exist at each expenditure round,and the multiplier is operative,the change in Real GDP equals

(Multiple Choice)

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Question 121

If Keynes's theory is correct,wage rates may be _________ in a _ direction which means that the curve will not shift to the ______ to remove the economy from a recessionary gap as it would in a self-regulating economy.

(Multiple Choice)

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Question 122

Exhibit 10-1 -Refer to Exhibit 10-1.At Q₁,

(Multiple Choice)

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Question 123

How is the multiplier expressed in terms of the MPS?

(Multiple Choice)

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Question 124

When the MPC = 0.6,the multiplier is

(Multiple Choice)

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Question 125

If total production is less than total expenditures,then business firms

(Multiple Choice)

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Question 126

Explain how the Keynesian view differs from the classical view with respect to saving.Explain further how the two views differ with respect to investment.

(Essay)

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Question 127

The economy is in equilibrium,TP = TE,and Real GDP is $2,000 billion.The MPC is 0.75,the multiplier is operative,and idle resources exist at each expenditure round.Autonomous investment spending falls by $10 billion.As a result,the TE curve shifts ,inventory levels unexpectedly ,business firms the quantity of goods and services they produce,and Real GDP by __.

(Multiple Choice)

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Question 128

There are no idle resources,the multiplier is operative,and autonomous spending rises.It follows that

(Multiple Choice)

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Question 129

Keynes believed that investment is

(Multiple Choice)

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Question 130

If consumption is greater than disposable income,it follows that

(Multiple Choice)

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Question 131

The part of consumption that is dependent on disposable income is called autonomous consumption.

(True/False)

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Question 132

If people buy more than has been produced,

(Multiple Choice)

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Question 133

The change in disposable income is $200 and the change in saving is $50.What is the marginal propensity to consume (MPC)?

(Multiple Choice)

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Question 134

Here is a consumption function: C = C₀ + MPC(Y_d).Which of the following is true about the consumption function?

(Multiple Choice)

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Question 135

Exhibit 10-6 -Refer to Exhibit 10-6.If government purchases decrease,it follows that

(Multiple Choice)

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Question 136

In Keynes' view,labor unions would resist wage cuts,but individual employees would go along with wage cuts initiated by his/her employer.

(True/False)

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Question 137

Describe the three basic points that Keynes made regarding consumption.Briefly explain why consumption was such a main concern in the Keynesian model.

(Essay)

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Question 138

Which of the following statements is false?

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Question 139

If total production is greater than total expenditures,then business firms

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Question 140

Showing 121 - 140 of 183

Exam 10: Keynesian Macroeconomics and Economic Instability: a Critique of the Self-Regulating Economy

Government purchases rise by $100 billion and the MPC equals 0.75.Assuming that idle resources exist at each expenditure round,and the multiplier is operative,the change in Real GDP equals

If Keynes's theory is correct,wage rates may be _______________ in a _____________ direction which means that the __________ curve will not shift to the __________ to remove the economy from a recessionary gap as it would in a self-regulating economy.

Exhibit 10-1 -Refer to Exhibit 10-1.At Q1,

How is the multiplier expressed in terms of the MPS?

When the MPC = 0.6,the multiplier is

If total production is less than total expenditures,then business firms

Explain how the Keynesian view differs from the classical view with respect to saving.Explain further how the two views differ with respect to investment.

There are no idle resources,the multiplier is operative,and autonomous spending rises.It follows that

Keynes believed that investment is

If consumption is greater than disposable income,it follows that

The part of consumption that is dependent on disposable income is called autonomous consumption.

If people buy more than has been produced,

The change in disposable income is $200 and the change in saving is $50.What is the marginal propensity to consume (MPC)?

Here is a consumption function: C = C0 + MPC(Yd).Which of the following is true about the consumption function?

Exhibit 10-6 -Refer to Exhibit 10-6.If government purchases decrease,it follows that

In Keynes' view,labor unions would resist wage cuts,but individual employees would go along with wage cuts initiated by his/her employer.

Describe the three basic points that Keynes made regarding consumption.Briefly explain why consumption was such a main concern in the Keynesian model.

Which of the following statements is false?

If total production is greater than total expenditures,then business firms

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free, controlled, and Relative

Supply,demand,and Price: Applications

Macroeconomic Measurements, part I: Prices and Unemployment

Macroeconomic Measurements, part II: GDP and Real GDP

Aggregate Demand and Aggregate Supply

Classical Macroeconomics and the Self-Regulating Economy

Fiscal Policy and the Federal Budget

Money,banking,and the Financial System

The Federal Reserve System

Money and the Economy

Monetary Policy

Expectations Theory and the Economy

Economic Growth: Resources, technology, ideas, and Institutions

The Financial Crisis of 2007-2009

Debates in Macroeconomics Over the Role and Effects of Government

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

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If Keynes's theory is correct,wage rates may be _________ in a _ direction which means that the curve will not shift to the ______ to remove the economy from a recessionary gap as it would in a self-regulating economy.

Exhibit 10-1 -Refer to Exhibit 10-1.At Q₁,

Here is a consumption function: C = C₀ + MPC(Y_d).Which of the following is true about the consumption function?