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Econ434MC13 - Topic 13 Keynesian Macro 1 The label...

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Topic 13: Keynesian Macro 1. The label “socialist” is least appropriate if applied to the major lines of reasoning of: (a) Robert Owen. (b) Thomas More. (c) Henri de Saint-Simon. (d) Karl Marx. (e) John Maynard Keyes. 2. John Maynard Keynes asserted that social change is most heavily influenced by: (a) the ideas of economic philosophers and theorists. (b) mindless conformity and harmful social conventions. (c) the concentrated economic and political power wielded by special interest groups. (d) use of the scientific method to generate new knowledge and innovate new products and technologies. (e) religious zealotry. 3. Peaks, contractions, troughs, and expansions are all aspects of: (a) consumer confidence. (b) business cycles. (c) inflationary pressures (d) motorcycles. 4. NOT standard nomenclature for a phase in a typical business cycle would be: (a) recovery. (b) recession. (c) depression (d) surplus (e) peak. 5. The allocative role of profit in stimulating economic growth in a capitalist system is least a primary focus of theories expounded by: (a) H.K.E. von Mangoldt. (b) Frank Knight. (c) Karl Marx. (d) John Maynard Keynes. (e) Richard Cantillon. 6. Wealth is a _____ variable while income is a _____ variable. (a) dynamic / static. (b) stock / flow. (c) temporal / non-temporal. (d) price / value. (e) supply / demand. 7. Keynesian theory accepts the classical and neoclassical theory that flexible wages, interest rates, and prices, combined with Say’s law, ensure full employment and a maximum value for output: (a) in the short run. (b) as long as government follows laissez faire policies. (c) but only if the government runs deficits to fight inflation and deflation. (d) in the long run, but in the long run we are all dead. (e) on average, but not at every instant in time. 8. The theorist to have most notably disagreed with the idea that money is neutral that “the absolute quantity of money in a nation has no affect on the real output of that nation” would have been: (a) John Maynard Keynes. (b) Adam Smith. (c) David Hume. (d) David Ricardo. (e) John Stuart Mill. 9. The concept that "demand creates its own supply" is most consistent with: (a) marginalist theory. (b) Keynesian theory. (c) natural rate theory. (d) new classical macroeconomics. (e) Marxist analysis. (f) modern monetarism. 10. Keynesian Aggregate Expenditures are the sum of: (a) Aggregate Demand + Aggregate Supply. (b) income + borrowing. (c) C + S + T and depend primarily on expectations. (d) C + I + G + (X-M) as these planned spendings relate to income. (e) consumer purchases + household saving + imports. 1
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11. Spending that does not add positively as a major component of Aggregate Demand would include: (a) consumption. (b) exports. (c) imports. (d) government purchases. (e) investment. (HINT: C I G X M is pronounced???) 12. The notion that wages and prices adjust asymmetrically to excess demands or supplies is most closely associated with (a) natural rate theory. (b) modern monetarism. (c) classical macroeconomics. (d) Keynesian theory. (e) Steven Hawking’s reformation of the theory of entropy.
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