Chapter 11 Quiz - Chapter 11 Quiz 1 How is full-employment output determined in the Keynesian model with efficiency wages The amount of output produced

Chapter 11 Quiz - Chapter 11 Quiz 1 How is full-employment...

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Chapter 11 Quiz 1.How is full-employment output determined in the Keynesian model with efficiency wages? In this model, how is full-employment output affected by changes in productivity (supply shocks)? How is full-employment output affected by changes in labor supply? 2.According to the Keynesian IS-LM model, what is the effect of the following on output, the real interest rate, employment, and the price level of an economy? Distinguish between effects in the short-run and in the long-run. Your answers in each column should be relative to the original long-run equilibrium levels of each variable.

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