-
At higher rates of interest
households save less because it is more expensive to save.
businesses demand more investment because there are more funds
available to invest.
households save more because they get a greater return on their
savings.
businesses demand more investment because future profitability
is likely to be greater.
According to Keynesian economics using the modern short-run
aggregate supply curve, if there are unutilized resources in the
economy and the aggregate demand decreases
real GDP will fall and...
-
VULCEA 1. When does the Keynesian theory of consumption NOT hold? a. In cross-sections. b. In the long run. c. In cyclical observations Other things being equal, the Neoclassical model of investment predicts that net investment will increase when 2. the: a. marginal product of capital falls. b. price of new capital goods rises. c. real interest rate rises. d. depreciation rate falls. 3. Which of the following is the weighted sum of the prices of a basket of domestically...
-
Product 13) 13) The gap that exists when equilibrium real Gross Domestic (GDP) is greater than full employment real Gross Domestic Product (GDP) is called a(n) A) demand gap. C) recessionary gap B) employment gap D) inflationary gap 14) 14) Economic growth will NOT result in inflation if aggregate demand shifts A) outward to the right at the same speed as aggregate supply B) outward to the right as aggregate supply shifts inward to the left. C) inward to the...
-
What do Keynesian economists think will happen when GDP is low,
with regard to firms' expenses (AS)?
a
Because of lower demand, prices of all factors (input costs) are
falling, and AS will shift to the right, compensating for any
loss/left-shift in aggregate demand, returning the economy to
equilibrium.
b
Because of lower demand, some incomes are falling yet some
expenses are hard to ignore. Wages, contracts, rents are not easily
scaled down with falling sales. These sticky wages keep...
-
1) The price of pepsi rises...what will happen to the demand for coke: a) the quantity demanded of coke will increase b) more coke will be sold at each price c) the demand curve for coke will shift to the right d) the demand curve for coke will shift to the left e) b and c 18) Which items are included in GDP?: a) sales of crack cocaine on a street corner next to Peet's coffee b) a prostitute's legal...
-
7. Equilibrium GDP on the demand side occurs when a. total spending equals total production, and inventories are zero. b. total spending equals total production, and inventories remain at desired levels. c. total spending exceeds total production, and inventories are rising. d. total spending is less than total production, and inventories are falling. For the next four questions refer to the following equations: C = 50+ 0.8 Y I= 100 8. The equilibrium level of GDP in this economy is:...
-
please help
Question 4 Which statement best characterizes what happens to the aggregate demand curve when the price level rises? a. A rise in the price level moves the economy leftward along the aggregate demand curve. b. A rise in the price level shifts the aggregate demand curve to the left. C. A rise in the price level moves the economy rightward along the aggregate demand curve. d. A rise in the price level shifts the aggregate demand curve to...
-
Consult exhibit 2 then, answers the following questions: 1/ Using the IS-LM model, how does the spending hypothesis explain the great depression 2 2/ When relying on the IS-LM model, economists often reach the conclusion that the "Money hypothesis" is not so relevant to explain the great depression. Explain why. Exhibit 2: TABLE 11-2 What Happened During the Great Depression? Consumption Unemployment Rate (1) Real GNP 23 1930 2036 1835 1695 144.2 141.5 1396 130.4 126.1 1931 1932 1933 1934...
-
need it as soo as posible please, thanks
Macroeconmics
received a 39 increase in your bominal wage and over the year, ination ran about 30) Suppose you received a Which of the following is nie? a) your nominal wage fell b) your real wage feil c) although your nominal wage fell your real waye d) both nominal and real wages increased 31) The actual rate of unemploy rate of employment will be greater than the naturale actual output in weater...
-
According to Keynesian theory, the most important determinant of
saving and consumption is
Select one:
a. the level of real income.
b. the stock of liquid assets.
c. the stock of durable goods in the consumer's possession.
d. the level of consumer indebtedness.
Question 5
Not yet answered
Marked out of 1.00
Flag question
Question text
In the Keynesian model, planned investment is inversely related
to
Select one:
a. the interest rate.
b. the level of income.
c. the wage...
VULCEA 1. When does the Keynesian theory of consumption NOT hold? a. In cross-sections. b. In the long run. c. In cyclical observations Other things being equal, the Neoclassical model of investment predicts that net investment will increase when 2. the: a. marginal product of capital falls. b. price of new capital goods rises. c. real interest rate rises. d. depreciation rate falls. 3. Which of the following is the weighted sum of the prices of a basket of domestically...
Product 13) 13) The gap that exists when equilibrium real Gross Domestic (GDP) is greater than full employment real Gross Domestic Product (GDP) is called a(n) A) demand gap. C) recessionary gap B) employment gap D) inflationary gap 14) 14) Economic growth will NOT result in inflation if aggregate demand shifts A) outward to the right at the same speed as aggregate supply B) outward to the right as aggregate supply shifts inward to the left. C) inward to the...
1) The price of pepsi rises...what will happen to the demand for coke: a) the quantity demanded of coke will increase b) more coke will be sold at each price c) the demand curve for coke will shift to the right d) the demand curve for coke will shift to the left e) b and c 18) Which items are included in GDP?: a) sales of crack cocaine on a street corner next to Peet's coffee b) a prostitute's legal...
7. Equilibrium GDP on the demand side occurs when a. total spending equals total production, and inventories are zero. b. total spending equals total production, and inventories remain at desired levels. c. total spending exceeds total production, and inventories are rising. d. total spending is less than total production, and inventories are falling. For the next four questions refer to the following equations: C = 50+ 0.8 Y I= 100 8. The equilibrium level of GDP in this economy is:...
please help
Question 4 Which statement best characterizes what happens to the aggregate demand curve when the price level rises? a. A rise in the price level moves the economy leftward along the aggregate demand curve. b. A rise in the price level shifts the aggregate demand curve to the left. C. A rise in the price level moves the economy rightward along the aggregate demand curve. d. A rise in the price level shifts the aggregate demand curve to...
Consult exhibit 2 then, answers the following questions: 1/ Using the IS-LM model, how does the spending hypothesis explain the great depression 2 2/ When relying on the IS-LM model, economists often reach the conclusion that the "Money hypothesis" is not so relevant to explain the great depression. Explain why. Exhibit 2: TABLE 11-2 What Happened During the Great Depression? Consumption Unemployment Rate (1) Real GNP 23 1930 2036 1835 1695 144.2 141.5 1396 130.4 126.1 1931 1932 1933 1934...
need it as soo as posible please, thanks
Macroeconmics
received a 39 increase in your bominal wage and over the year, ination ran about 30) Suppose you received a Which of the following is nie? a) your nominal wage fell b) your real wage feil c) although your nominal wage fell your real waye d) both nominal and real wages increased 31) The actual rate of unemploy rate of employment will be greater than the naturale actual output in weater...