Exam 11: Aggregate Supply and Demand

The difference between market demand and aggregate demand is that:

Which of the following causes the aggregate supply curve to shift to the left,ceteris paribus?

If an economy is experiencing a recession,the Keynesian approach to achieving full employment is to:

Controversies between Keynesian,monetarist,supply-side,and eclectic theories focus on:

Which of the following explanations of the business cycle focuses on both aggregate supply and aggregate demand shifts?

According to Keynesian theory,the correct fiscal policy action to stimulate the economy would be to:

According to Say's Law,all goods produced will be sold:

Keynes believed that small disturbances in the economy would be made even greater by the market mechanism and thus government intervention was required.

Table 11.1-Aggregate supply and demand -In Table 11.1,at which of the following price levels would a surplus occur?

Unlike the Classical economists,Keynes asserted that:

Ceteris paribus,a rightward shift of the aggregate supply curve will cause the equilibrium price level to _______ and equilibrium real output to _______.

According to Keynes:

Ceteris paribus,based on the real balances effect,if the price level falls:

For macro equilibrium to occur,aggregate demand must equal aggregate supply at a fairly low price level.

Which of the following is definitely true if the economy is in macro equilibrium?

If,at the prevailing price level,the aggregate quantity supplied exceeds the aggregate quantity demanded,the price level will tend to fall.

Keynes viewed the economy as inherently unstable and suggested that during a recession policy makers should:

The aggregate demand curve is downward sloping because,ceteris paribus:

Monetary policy:

Which of the following economic theories focus on aggregate demand to explain changes in unemployment and inflation?