Exam 11: Classical and Keynesian Macro Analyses

Keynes argued that I.Capitalism did not always lead to full employment. II.Nominal prices were more important than relative prices.

What is true when the credit market is in equilibrium?

The gap that exists when equilibrium real GDP is greater than the level of real GDP shown by the position of the long-run aggregate supply curve is

All of the following will shift the short-run aggregate supply (SRAS)curve EXCEPT

In the classical model,an increase in aggregate demand will cause

In the classical model,

A temporary embargo on oil from the Middle East going in to the United States would

Real GDP is ________ determined in the classical model and ________ determined in the Keynesian model.

The inflation associated with the oil price shocks in the 1970s after OPEC restricted the supply of oil is an example of

According to the classical model,the income generated by production is

Suppose the U.S.dollar weakens against the euro (and against other major currencies).This weakening of the dollar will cause which of the following to occur?

Which of the following can cause inflation?

At higher rates of interest,

Keynesian economists argue that

Which of the following is NOT an assumption of the classical model?

The relationship between the price level and the real Gross Domestic Product (GDP)without full adjustment or full information is represented by

The significant increases in oil prices during the latter 2000s was an example of

What is Say's Law and what does it mean?

Suppose the U.S.dollar weakens against the euro (and against other major currencies).We know with certainty that this weakening of the dollar will cause which of the following to occur?

One possible result of a fall in aggregate demand coupled with a stable short-run aggregate supply is