Keynesian believe that
The aggregate demand curve is downward sloping
A change on the quantity of money causes the aggregate demand curve to shift
Changes in government spending and taxes cause the aggregate demand curve to shift
All of the above
The aggregate supply curve is
The total quantity of raw materials offered for sale at different process
The total quantity of final goods and services offered for sale at the current price level
The total quantity of final goods and services offered for sale at different price levels.
The total quantity of intermediate and final goods ans services offered for sale at different price levels.
A situation of rising prices and falling output is known as
Stagflation
Hyper inflation
Deflation
Disinflation
The aggregate demand curve is downward sloping because
A lower price level, holding the nominal quantity of money constant, leads to a larger quantity of money in real terms causes the interest rate to fall, and stimulates planned investment spending
A lower price level, holding the nominal quantity of money constant leads t a larger quantity of money in real terms, causes the interest rate to fall, and stimulates planned investment spending
A higher price level, holding the nominal quantity of money constant
A higher price level holding the nominal quantity of money change
According to monetarists a decline in the money supply, holding other factors constant, shifts the aggregate ____ curve to the ______.
Demand : right
Demand : left
Supply : right
Supply : left
The aggregate demand curve slopes downward because a decrease in the price level means an ____ in the real money supply and therefore a ____ level of real spending.
Increase : higher
Increase : lower
Decrease : lower
Decrease : higher
The Keynesian analysis of aggregate demand indicates that changes in the money supply
Have no effect on aggregate demand
Shift the aggregate demand curve in the opposite direction of the change in government spending
Shift the aggregate demand curve in the same direction as the change in government spending
Move the economy along the aggregate demand curve rather than shifting it.
Monetarists believe that
A change in the quantity of money causes the aggregate demand curve to shift
Both a and b
The percentage of the labour force that is unemployed is the
Labour force rate
Unemployment population ratio
Unemployment rate
Employment rate
