ECON test 3

Question 1 2 points Save
According to the Keynesian analysis, equilibrium will occur where planned injections equal planned leakages.

Don't use plagiarized sources. Get Your Custom Essay on
ECON test 3
Just from $13/Page
Order Essay

True
False
Question 2 2 points Save
Net exports are excluded in the calculation of the national income.

Document Preview:

Question 1 2 points Save
According to the Keynesian analysis, equilibrium will occur where planned injections equal planned leakages.

True
False
Question 2 2 points Save
Net exports are excluded in the calculation of the national income.

True
False
Question 3 2 points Save
In the Keynesian model, if planned saving is greater than planned investment,

the economy will expand
unemployment will rise
the marginal propensity to consume will decline
the rate of interest will rise
Question 4 2 points Save
The Keynesian analysis differs from classical analysis in its short-run analysis of the economy.

True
False
Question 5 2 points Save
The monetarist school is more similar to the Keynesian school than the classical school.

True
False
Question 6 2 points Save
In the Keynesian model, the 45-degree line consists of the points where

planned consumption is equal to planned saving
total output is equal to aggregate expenditure
total consumption is equal to total expenditure
total saving equals total investment
Question 7 2 points Save
Say’s Law implies that

production generates income, which is all spent to purchase what was produced
demand creates its own supply
markets do not clear
demand determines real output
Question 8 2 points Save
Income earned by the productive resources does not include

wages and salaries
transfer of payments
profits
interest
Question 9 2 points Save
The purpose of the Keynesian analysis is to explain what determines the

size of the labor force
price level
amount of money required in the economy
levels of national income, output, and employment
Question 10 2 points Save
According to the classical economists, demand creates its own supply.

True
False
Question 11 2 points Save
Say’s Law states that

supply is greater than demand
supply…

Attachments: