ecChapter 10 - Chapter 10 Name: _ Date: _ 1. John Maynard...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 10 Name: __________________________ Date: _____________ 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. 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. 4. When planned expenditure is drawn on a graph as a function of income, the slope of the line is: A) zero. B) between zero and one. C) one. D) greater than one. 5. With planned expenditure and the equilibrium condition Y = PE drawn on a graph with income along the horizontal axis, if income exceeds expenditure, then income is to the ______ of equilibrium income and there is unplanned inventory ______. A) right; decumulation B) right; accumulation C) left; decumulation D) left; accumulation Page 1 6. When firms experience unplanned inventory accumulation, they typically: A) build new plants. B) lay off workers and reduce production. C) hire more workers and increase production. D) call for more government spending. Use the following to answer questions 7-8: Exhibit: Keynesian Cross 7. (Exhibit: Keynesian Cross) In this graph, the equilibrium levels of income and expenditure are: A) Y 1 and PE 1. B) Y 2 and PE 2. C) Y 3 and PE 3. D) Y 3 and PE 4.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8. (Exhibit: Keynesian Cross) In this graph, if firms are producing at level Y 3, then inventories will ______ inducing firms to ______ production. A) rise; increase
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/28/2010 for the course ECO 2023 taught by Professor Foran during the Fall '08 term at Miami Dade College, Miami.

Page1 / 5

ecChapter 10 - Chapter 10 Name: _ Date: _ 1. John Maynard...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online