Exam 1: Classical Economic Theory

In classical theory which of the following is found in the economy:

In MV=PT, if M doubles and V and T remain constant, then P will:

The Cambridge version of the quantity theory of money was developed by:

The idea that a general cut in wages will finally lead to a state of full employment was suggested by :

The classical economists believed that the demand for labour is a function of:

In the Fisher's extended equation of exchange MI VI represents:

As per classical theory saving is:

Classicals treated money as a:

The aggregate production function implied under classical theory is :

The law which states that supply creates its own demand and overproduction is impossible is known as:

In classical system which of the following keeps the economy at full employment:

In Fisher's equation of exchange MV=PT, the variation of which produces a proportional change in price:

The quantity theory of money was restated by:

In the Cambridge equation of M = kPR, the value of kis:

Wages and prices do not adjust quickly to restore general equilibrium is a property of

In Fisher's transaction velocity model, one of the following is not an assumption:

As a result of an increase in capital, ceteris paribus, ------- the marginal productivity of labour:

I classical demand for money, the relationship between money supply and price level is:

In the equation MV+ MI VI = PT, 'M 'denotes:

Say's law of market says: