Question 1

Explain Keynes's approach to how equality of savings and investment in the economy is brought about.

Accepted Answer

The equality of savings and investment i

Question 2

When did the Great Depression occur?

Accepted Answer

A) At the beginning of the twentieth century 
B) In the seven years following World War I 
C) During the decade of the 1930s 
D) In the five years following World War II 
A) At the beginning of the twentieth century 
B) In the seven years following World War I 
C) During the decade of the 1930s 
D) In the five years following World War II

Question 3

According to Keynes,how does an economy recover from a recession?

Accepted Answer

It will only recover as a resu

Question 4

According to neoclassical theory,why is involuntary unemployment impossible?

Accepted Answer

Because unemployment will forc

Question 5

According to the neoclassical economists,what would happen if production exceeded total spending in an economy?

Accepted Answer

Prices and wages,but

Question 6

How did the supply-siders explain the high inflation and high unemployment rates of the 1970s?

Accepted Answer

According to the supply-siders

Question 7

During the Great Depression,what were Keynes's major concerns?

Accepted Answer

The possibility that an economy may unde

Question 8

What ensures the equality of savings and investment,according to neoclassical theory?

Accepted Answer

A) Flexible prices 
B) Flexible interest rates 
C) Flexible wages 
D) Say's Law 
A) Flexible prices 
B) Flexible interest rates 
C) Flexible wages 
D) Say's Law

Question 9

One of the major criticisms of the supply-side emphasis on using tax cuts to stimulate the economy is that such cuts affect aggregate demand more than aggregate supply.

Accepted Answer

A) True 
 B)False

Question 10

By June 2010,the effects of stimulative policies showed countries were coming out of recession.However,there were other concerns regarding the impact of the policies.What was the major concern?

Accepted Answer

Rising budget deficits were a

Question 11

The response of the US and Canada to budget deficits that had arisen from stimulative policies were different from those of European countries.Explain the differences.

Accepted Answer

The US and Canada favoured the

Question 12

According to neoclassical economists,what would happen if total spending was less than total output?

Accepted Answer

A) Product prices would rise,but wage rates would fall. 
B) Product prices would fall,but wage rates would rise. 
C) Nominal GDP would rise,but real GDP would remain constant. 
D) Both product prices and wage rates would fall. 
E) Both product prices and wage rates would rise. 
A) Product prices would rise,but wage rates would fall. 
B) Product prices would fall,but wage rates would rise. 
C) Nominal GDP would rise,but real GDP would remain constant. 
D) Both product prices and wage rates would fall. 
E) Both product prices and wage rates would rise.

Question 13

Examine the graph below and answer the questions which follow.
a)What problem does the policy approach seek to address?
b)What might have cause of the shifting of the AS curve?
c)What might happen as a result of the shift?

Accepted Answer

a)It illustrates stagflation.

Question 14

Neoclassical economists believed that market economies were self-adjusting and concluded that prolonged recessions were an impossibility.What is the basis of this argument?

Accepted Answer

· neoclassical economists believed that

Question 15

How is a historical look at the macroeconomy of Canada beneficial?

Accepted Answer

A) It assures us that the real issues of the day do not change. 
B) It enables us to realize that the views of economists about the issues of the day are very similar over time. 
C) It helps us to identify the relationship between economic events and changes in macroeconomic theory. 
D) It establishes the unchanging nature of macroeconomic theory. 
A) It assures us that the real issues of the day do not change. 
B) It enables us to realize that the views of economists about the issues of the day are very similar over time. 
C) It helps us to identify the relationship between economic events and changes in macroeconomic theory. 
D) It establishes the unchanging nature of macroeconomic theory.

Question 16

There were two distinctive approaches with respect to priorities for meeting economic goals while in the recovery phase of the financial crisis.What were these priorities? Provide examples of countries which adopted each approach.

Accepted Answer

The neoclassical approach of 'balance th

Question 17

Why is unemployment voluntary,according to neoclassical theory?

Accepted Answer

Unemployment is voluntary according to n

Question 18

Explain how a surplus in the labour market is eliminated.

Accepted Answer

A surplus in the labour market occurs wh

Question 19

Sub-prime mortgages and derivatives are associated with stagflation.

Accepted Answer

A) True 
 B)False

Question 20

All of the following,except one,are pillars on which neoclassical theory is built.Which is the exception?

Accepted Answer

A) The flexibility of production 
B) The validity of Say's Law 
C) The flexibility of prices 
D) The flexibility of interest rates 
E) The flexibility of wages 
A) The flexibility of production 
B) The validity of Say's Law 
C) The flexibility of prices 
D) The flexibility of interest rates 
E) The flexibility of wages

Explain Keynes's approach to how equality of savings and investment in the economy is brought about.

When did the Great Depression occur?

According to Keynes,how does an economy recover from a recession?

According to neoclassical theory,why is involuntary unemployment impossible?

According to the neoclassical economists,what would happen if production exceeded total spending in an economy?

How did the supply-siders explain the high inflation and high unemployment rates of the 1970s?

During the Great Depression,what were Keynes's major concerns?

What ensures the equality of savings and investment,according to neoclassical theory?

One of the major criticisms of the supply-side emphasis on using tax cuts to stimulate the economy is that such cuts affect aggregate demand more than aggregate supply.

By June 2010,the effects of stimulative policies showed countries were coming out of recession.However,there were other concerns regarding the impact of the policies.What was the major concern?

The response of the US and Canada to budget deficits that had arisen from stimulative policies were different from those of European countries.Explain the differences.

According to neoclassical economists,what would happen if total spending was less than total output?

Examine the graph below and answer the questions which follow. a)What problem does the policy approach seek to address? b)What might have cause of the shifting of the AS curve? c)What might happen as a result of the shift?

Neoclassical economists believed that market economies were self-adjusting and concluded that prolonged recessions were an impossibility.What is the basis of this argument?

How is a historical look at the macroeconomy of Canada beneficial?

There were two distinctive approaches with respect to priorities for meeting economic goals while in the recovery phase of the financial crisis.What were these priorities? Provide examples of countries which adopted each approach.

Why is unemployment voluntary,according to neoclassical theory?

Explain how a surplus in the labour market is eliminated.

Sub-prime mortgages and derivatives are associated with stagflation.

All of the following,except one,are pillars on which neoclassical theory is built.Which is the exception?

The Economic Problem

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Aggregate Expenditures

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

Filters

Exam 13: A Walk Through the Twentieth Century and Beyond

Explain Keynes's approach to how equality of savings and investment in the economy is brought about.

When did the Great Depression occur?

According to Keynes,how does an economy recover from a recession?

According to neoclassical theory,why is involuntary unemployment impossible?

According to the neoclassical economists,what would happen if production exceeded total spending in an economy?

How did the supply-siders explain the high inflation and high unemployment rates of the 1970s?

During the Great Depression,what were Keynes's major concerns?

What ensures the equality of savings and investment,according to neoclassical theory?

One of the major criticisms of the supply-side emphasis on using tax cuts to stimulate the economy is that such cuts affect aggregate demand more than aggregate supply.

By June 2010,the effects of stimulative policies showed countries were coming out of recession.However,there were other concerns regarding the impact of the policies.What was the major concern?

The response of the US and Canada to budget deficits that had arisen from stimulative policies were different from those of European countries.Explain the differences.

According to neoclassical economists,what would happen if total spending was less than total output?

Examine the graph below and answer the questions which follow. a)What problem does the policy approach seek to address? b)What might have cause of the shifting of the AS curve? c)What might happen as a result of the shift?

Neoclassical economists believed that market economies were self-adjusting and concluded that prolonged recessions were an impossibility.What is the basis of this argument?

How is a historical look at the macroeconomy of Canada beneficial?

There were two distinctive approaches with respect to priorities for meeting economic goals while in the recovery phase of the financial crisis.What were these priorities? Provide examples of countries which adopted each approach.

Why is unemployment voluntary,according to neoclassical theory?

Explain how a surplus in the labour market is eliminated.

Sub-prime mortgages and derivatives are associated with stagflation.

All of the following,except one,are pillars on which neoclassical theory is built.Which is the exception?

The Economic Problem

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Aggregate Expenditures

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

Filters