Exam 10: Classical and Keynesian Macro Analyses

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

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

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

In the classical model

One tenet of classical economics is that

Say's law implies that

What is the underlying assumption of the original, simplified Keynesian model?

Demand-pull inflation is caused by

All the following are assumptions of the classical model EXCEPT

At higher rates of interest

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

The idea that supply creates its own demand is known as

According to Keynes, wages are inflexible because

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

Which of the following is NOT a reason why real GDP can be expanded beyond a level consistent with its long-run growth path in modern Keynesian analysis?

11.4 Consequences of Changes in Aggregate Demand -Refer to the above figure. An increase in aggregate demand beyond real Gross Domestic Product (GDP)level Y₁ would result in

In the original Austin Powers, Dr. Evil is cryogenically frozen for thirty years (from the late 1960s to the late 1990s). Upon his return he hatches a plan to extort one million dollars from various world governments. His henchmen are unimpressed. What type(s)of inflation have made Dr. Evil's proposed blackmail amount seem too small?

An individual who is suffering from money illusion is more concerned with

Which statement best characterizes the classical economists' view of saving and investment?

In the classical model, what is the result of an increase in aggregate demand?