Exam 11: Classical and Keynesian Macro Analyses

If aggregate demand and nominal GDP increase while the price level is constant,we would conclude that

A major hurricane causes production problems in Gulf Coast region of the United States.This would cause

In the classical model,a rightward shift in the aggregate demand curve will,in the long run,

Long-run unemployment in the classical model is considered to be impossible because

To explain the existence of excess capacity,Keynes argued that

In the above figure,the economy would most likely move from AD1 to AD2 because of

The gap that exists when equilibrium real GDP is less than full-employment real GDP is

The idea that "supply creates its own demand" is attributed to which of the following economists?

If short-run aggregate supply is upward sloping,the assumption is that

In the classical model,real Gross Domestic Product (GDP)per year is

-The three curves in the above figure are

Suppose an economy originally in long-run equilibrium experiences a decrease in aggregate demand.According to the classical model,

If the price level kept increasing,the short-run aggregate supply (SRAS)curve would get steeper because

The concept that producing goods and services generates the means and the willingness to purchase other goods and services is

Demand-pull inflation is caused by

If the equilibrium level of real GDP per year is greater than the full-employment level of GDP,then

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

In the classical model,the aggregate supply curve

-Refer to the above figure.Which of the graphs is consistent with the Keynesian short-run aggregate supply curve?

The gap that exists when equilibrium real Gross Domestic Product (GDP)is greater than full employment real Gross Domestic Product (GDP)is called a(n)