Exam 11: Classical and Keynesian Macro Analyses

If the U.S.dollar becomes weaker in international markets,the net effects will include

The Keynesian short-run aggregate supply curve in the simplified Keynesian model is unrealistic because

Cost-push inflation is

In the Keynesian model,to understand the determination of income and employment it is necessary to understand

A key component of the Keynesian model is that

The implication of Say's law is that

Which of the following actions would cause the aggregate demand curve to shift to the left?

The Keynesian short-run aggregate supply curve is horizontal because

-In the above figure,what could cause the shift of aggregate demand from to ?

According to the classical model,more saving leads to more investment because

A recessionary gap is the amount by which

In the short run,if the price level rises,then the overall economy can temporarily produce beyond its nominal capacity.One reason for this is that

The short-run aggregate supply curve is a relationship between

According to the classical model,

Equilibrium real GDP rises after the dollar strengthened.From this,we can conclude that

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

In the short run,real GDP can increase beyond a level consistent with the long-run growth path if

The reason that it is possible for the economy in the above figure to be at E2 rather than at E1 is that

According to Keynes,the "stickiness" of wage rates could best be explained by

-In the above figure,the inflationary gap can correctly be identified as