practicetest-Ch10 Results

practicetest-Ch10 Results - practicetest-Ch10 Results

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24% (6 out of 25 correct) 1. John Maynard Keynes wrote that responsibility for low income and high unemployment in economic downturns should be placed on: A. low levels of capital. B. an untrained labor force. C. inadequate technology. D. low aggregate demand. 2. The IS-LM model takes ______ as exogenous. A. the price level and national income B. the price level C. national income D. the interest rate 3. The IS curve plots the relationship between the interest rate and ______ that arises in the market for ______. A. national income; goods and services B. the price level; goods and services C. national income; money D. the price level; money 4. For the purposes of the Keynesian cross, planned expenditure consists of: A. planned investment. B. planned government spending. C. planned investment and government spending. D. planned investment, government spending, and consumption expenditures. 5. When drawn on a graph with Y along the horizontal axis and E along the vertical axis, the line showing planned expenditures rises to the: practicetest-Ch10 Results .. 1 of 6 11/6/2009 4:38 PM
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A. right with a slope less than one. B. right with a slope greater than one. C. left with a slope less than one. D. left with a slope greater than one. 6. The equilibrium condition in the Keynesian-cross analysis in a closed economy is: A. income equals consumption plus investment plus government spending. B. planned expenditure equals consumption plus planned investment plus government spending. C. actual expenditure equals planned expenditure. D. actual saving equals actual investment. 7. The Keynesian cross shows: A. determination of equilibrium income and the interest rate in the short run. B.
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This note was uploaded on 11/17/2009 for the course ECO 121212 taught by Professor Smith during the Spring '09 term at Culver-Stockton.

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practicetest-Ch10 Results - practicetest-Ch10 Results

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