Here is a consumption function: C = C0 + MPC(Yd).The C0 term is usually defined as

A) autonomous consumption. B) point-zero consumption. C) mandatory consumption. D) propensitory consumption. E) none of the above A) autonomous consumption. B) point-zero consumption. C) mandatory consumption. D) propensitory consumption. E) none of the above

A) Say's law would hold in a laissez-faire economy. B) the economy would always be near or on its production possibilities frontier. C) wages and prices are often inflexible in the downward direction. D) the equilibrium level of output will always be at the full-employment level of output. A) Say's law would hold in a laissez-faire economy. B) the economy would always be near or on its production possibilities frontier. C) wages and prices are often inflexible in the downward direction. D) the equilibrium level of output will always be at the full-employment level of output.

Exhibit 10-1 -Refer to Exhibit 10-1.At Q3,there is a tendency for Real GDP to

A) rise. B) fall. C) remain unchanged. D) There is not enough information to answer this question. A) rise. B) fall. C) remain unchanged. D) There is not enough information to answer this question.

Here is a consumption function: C = C0 + MPC(Yd).If MPC is 0.95,then we know that

A) as Yd rises by $1,Co rises by $0.95. B) as Yd rises by $1,C rises by $0.95. C) Yd rises by $0.95. D) as C0 rises by $0.05,Yd rises by $1. A) as Yd rises by $1,Co rises by $0.95. B) as Yd rises by $1,C rises by $0.95. C) Yd rises by $0.95. D) as C0 rises by $0.05,Yd rises by $1.

Here is a consumption function: C = C0 + MPC(Yd).If C0 = $300,then we know that

A) if Yd rises by $1,then Co rises by $1. B) if Yd rises by $1,then C rises by $300. C) as C0 rises by $15,C rises by $15. D) as C0 rises by $15,Yd rises by $15. A) if Yd rises by $1,then Co rises by $1. B) if Yd rises by $1,then C rises by $300. C) as C0 rises by $15,C rises by $15. D) as C0 rises by $15,Yd rises by $15.

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

Explore all topics

Exhibit 10-7 -Refer to Exhibit 10-7.If government purchases decrease,which of the following is possible?

(Multiple Choice)

4.8/5

(42)

Question 161

The economy is in equilibrium,TP = TE,and Real GDP is $4,000 billion.The MPC is 0.70,the multiplier is operative,and idle resources exist at each expenditure round.Government purchases fall by $17 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)

4.8/5

(45)

Question 162

The efficiency wage model is an explanation of wage and thus a support for the __________ view.

(Multiple Choice)

4.8/5

(40)

Question 163

When the MPC = 0.80,the multiplier is

(Multiple Choice)

4.9/5

(43)

Question 164

The economy is in equilibrium,TP = TE,and Real GDP is $500 billion.The MPC is 0.95,the multiplier is operative,and idle resources exist at each expenditure round.Autonomous investment spending rises by $4 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)

4.9/5

(45)

Question 165

According to efficiency wage models,labor productivity depends on

(Multiple Choice)

4.8/5

(38)

Question 166

Here is a consumption function: C = C₀ + MPC(Y_d).The C₀ term is usually defined as

(Multiple Choice)

4.8/5

(37)

Question 167

Keynes believed that

(Multiple Choice)

4.8/5

(39)

Question 168

Exhibit 10-1 -Refer to Exhibit 10-1.At Q₃,there is a tendency for Real GDP to

(Multiple Choice)

4.9/5

(36)

Question 169

Exhibit 10-6 -Refer to Exhibit 10-6.Which of the following is consistent with the economy producing Q₂?

(Multiple Choice)

4.9/5

(47)

Question 170

Here is a consumption function: C = C₀ + MPC(Y_d).If MPC is 0.95,then we know that

(Multiple Choice)

4.9/5

(38)

Question 171

Explain the process by which an initial change in autonomous spending can lead to an even greater change in total spending.

(Essay)

4.9/5

(27)

Question 172

Exhibit 10-5 -Refer to Exhibit 10-5.When TE is $800 billion,what happens to inventories?

(Multiple Choice)

4.9/5

(39)

Question 173

Efficiency wage models imply that workers are more productive when they are paid a higher wage,as compared to when they are paid a lower wage.

(True/False)

4.8/5

(44)

Question 174

According to Keynes,what households plan to save

(Multiple Choice)

4.8/5

(39)

Question 175

One similarity between the beliefs of the classical economists and Keynes is that increased saving would necessarily stimulate an equal amount of increased investment spending.

(True/False)

4.8/5

(40)

Question 176

Which of the following statements is true?

(Multiple Choice)

4.7/5

(39)

Question 177

Here is a consumption function: C = C₀ + MPC(Y_d).If C₀ = $300,then we know that

(Multiple Choice)

4.9/5

(39)

Question 178

Which of the following is not an aspect of Keynesian economics?

(Multiple Choice)

4.8/5

(33)

Question 179

Exhibit 10-6 -Refer to Exhibit 10-6.If total production (TP)is greater than total expenditures (TE),the economy is currently producing a level of Real GDP that is

(Multiple Choice)

4.9/5

(41)

Question 180

Showing 161 - 180 of 183

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

Exhibit 10-7 -Refer to Exhibit 10-7.If government purchases decrease,which of the following is possible?

The efficiency wage model is an explanation of wage __________ and thus a support for the ____________________ view.

When the MPC = 0.80,the multiplier is

According to efficiency wage models,labor productivity depends on

Here is a consumption function: C = C0 + MPC(Yd).The C0 term is usually defined as

Keynes believed that

Exhibit 10-1 -Refer to Exhibit 10-1.At Q3,there is a tendency for Real GDP to

Exhibit 10-6 -Refer to Exhibit 10-6.Which of the following is consistent with the economy producing Q2?

Here is a consumption function: C = C0 + MPC(Yd).If MPC is 0.95,then we know that

Explain the process by which an initial change in autonomous spending can lead to an even greater change in total spending.

Exhibit 10-5 -Refer to Exhibit 10-5.When TE is $800 billion,what happens to inventories?

Efficiency wage models imply that workers are more productive when they are paid a higher wage,as compared to when they are paid a lower wage.

According to Keynes,what households plan to save

One similarity between the beliefs of the classical economists and Keynes is that increased saving would necessarily stimulate an equal amount of increased investment spending.

Which of the following statements is true?

Here is a consumption function: C = C0 + MPC(Yd).If C0 = $300,then we know that

Which of the following is not an aspect of Keynesian economics?

Exhibit 10-6 -Refer to Exhibit 10-6.If total production (TP)is greater than total expenditures (TE),the economy is currently producing a level of Real GDP that is

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

International Trade

International Finance

Globalization and International Impacts on the Economy

The Economic Case for and Against Government: Five Topics Considered

Stocks, bonds, futures, and Options

Filters

The efficiency wage model is an explanation of wage and thus a support for the __________ view.

Here is a consumption function: C = C₀ + MPC(Y_d).The C₀ term is usually defined as

Exhibit 10-1 -Refer to Exhibit 10-1.At Q₃,there is a tendency for Real GDP to

Exhibit 10-6 -Refer to Exhibit 10-6.Which of the following is consistent with the economy producing Q₂?

Here is a consumption function: C = C₀ + MPC(Y_d).If MPC is 0.95,then we know that

Here is a consumption function: C = C₀ + MPC(Y_d).If C₀ = $300,then we know that