Tutorial 6 question set - EC101 Tutorial 6 Topic Keynesian Expenditure model and multipliers 1 According to the Keynesian theory the typical firm A

Tutorial 6 question set - EC101 Tutorial 6 Topic...

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EC101 Tutorial 6Topic: Keynesian Expenditure model and multipliers1.According to the Keynesian theory, the typical firmA) changes its prices frequently in response to fluctuations in aggregate demand.B)lowers its prices when inventories are decreasing.C) does not change its prices immediately when aggregate demand fluctuates.D)lowers its prices if sales exceed production.2.In the very short run, the components of aggregate planned expenditure that depend on the level of real GDP are3.An increase in real GDP leads to4.Disposable income is

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