Question Chapter 13 Random Question 1 1 / 1 point

05 Jun Question Chapter 13 Random Question 1 1 / 1 point

Question
Chapter 13 Random

Question 1 1 / 1 point

Which of the following is a building block of neoclassical economics?

Question options:

a)

wages and prices will adjust in a flexible manner

b)

aggregate demand model

c)

sticky wages and prices

d)

the size of the economy is determined by real GDP

Question 2 1 / 1 point

Using a neoclassical model, what will the level of cyclical unemployment be when an economy is producing at potential GDP?

Question options:

a)

3% – 5%

b)

zero

c)

never 0%

d)

1% – 3%

Question 3 1 / 1 point

From a neoclassical view, which of the following is a true statement?

Question options:

a)

Because wages are flexible, they are unaffected by high rates of unemployment.

b)

Lower wages will cause an economy-wide increase in the price of a key input.

c)

The economy cannot sustain production above its potential GDP in the long run.

d)

A surge in aggregate demand ends up as a rise in output, but does not increase price levels.

Question 4 1 / 1 point

In the neoclassical version of the AD/AS model, which of the following should you use to represent the AS curve?

Question options:

a)

the AS curve shifting as potential GDP expands

b)

a vertical line drawn at the level of potential GDP

c)

the AS curve shifting as productivity increases

d)

an upward sloping curve with a vertical top

Question 5 1 / 1 point

A typical Keynesian aggregate supply (AS) curve _______________ and a typical Keynesian Phillips curve _____________.

Question options:

a)

is vertical; is vertical

b)

slopes upward; slopes upward

c)

slopes upward; slopes downward

d)

slopes downward; slopes downward

Question 6 1 / 1 point

The neoclassical perspective on macroeconomics emphasizes that in the long run, the economy seems to rebound back to its _____________ and its ____________________.

Question options:

a)

natural level of output; cyclical unemployment rate

b)

real GDP; natural rate of unemployment

c)

long term growth; cyclical unemployment

d)

potential GDP; natural rate of unemployment

Question 7 1 / 1 point

The Keynesian view of economics assumes that:

Question options:

a)

economic output is primarily determined by aggregate supply.

b)

the Keynesian Phillips curve is vertical.

c)

the economy must focus is on long-term growth.

d)

wages are sticky.

Question 8 1 / 1 point

At a macroeconomic level, the theory of rational expectations points out that if the ______________________ is vertical over time, then people should rationally expect this pattern.

Question options:

a)

Phillips curve

b)

aggregate demand curve

c)

GDP

d)

aggregate supply curve

Question 9 1 / 1 point

From a neoclassical viewpoint, government should focus less on:

Question options:

a)

aggregate supply.

b)

controlling inflation.

c)

long-term growth.

d)

cyclical unemployment.

Question 10 1 / 1 point

If aggregate supply is vertical, then which of the following st