Exam 8:The Classical Long run Model

Which of the following best describes the aggregate production function if output is measured on the vertical axis and the number of workers employed is measured on the horizontal axis? The curve is

In the classical model,the demand for loanable funds comes from

The desire for goods and services is

Which of the following is a definition of the aggregate production function?

The market clearing assumption is

-Refer to Figure 8-4.Based on these graphs,what is the total quantity of loanable funds demanded at an interest rate of 5 percent?

According to Say's Law,in the aggregate

It is possible for an economy to produce more than its potential level of output,at least for a short period of time.

Suppose there are no firms,only the government and households.What would be the result if for some reason the supply of saving at every interest rate suddenly fell?

What is the price of funds in the loanable funds market?

The Classical model

One reason why economists often appear to disagree when asked about the impact of some bad economic news is that

Which of the following is a leakages from the circular flow?

In the classical model,beginning from an equilibrium in which the government is running a budget surplus,

John Maynard Keynes was the author of

In the classical model,beginning from an equilibrium in which the government is running a budget surplus,an increase in government spending will

Which concept springs to mind when thinking of the classical model?.

Which of the following is the formula for the government's budget deficit?

Classical economists believed that production could be stuck below its full employment level for a long period of time.

Assuming the economy was in equilibrium,use the following information to calculate the total value of leakages. Consumption Spending \ 3.5 tillian Net Taxes \ 2.7 tillian Hausehold Seving \ 2.5 tillian Avestment Spenfing \ 2.2 tillian Gavernment purchases \ 3.0 trillian Total leakages are