ch10--practice questions

ch10--practice questions - Name: _ Date: _ 1. John Maynard...

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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. 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. In the Keynesian-cross model, actual expenditures differ from planned expenditures by the amount of: A) liquidity preference. B) the government-purchases multiplier. C) unplanned inventory investment. D) real money balances. 5. According to the analysis underlying the Keynesian cross, when planned expenditure exceeds income: A) income falls. B) planned expenditure falls. C) unplanned inventory investment is negative. D) prices rise. Page 1
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Use the following to answer questions 6-8: Exhibit: Keynesian Cross 6. (Exhibit: Keynesian Cross) In this graph, the equilibrium levels of income and expenditure are: A) Y 1 and PE 1 . B)
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This note was uploaded on 02/16/2012 for the course ECON 143D taught by Professor Gafney during the Spring '12 term at UC Riverside.

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ch10--practice questions - Name: _ Date: _ 1. John Maynard...

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