the economics of money, banking, and financial markets

670 #

© 2014 Pearson Canada Inc.#

4. 
   

   Keynes was especially concerned with explaining the ____.
   A) recession of 1920- 21
   B) low levels of output and employment during the Great Depression
   C) strong economic growth of the 1920s
   D) high unemployment in Great Britain during the 1920s
   Answer: B
   Diff: 2 Type: MC Page Ref: 541
   Skill: Recall
   Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

   
   


5. 
   

   Keynes was especially concerned with explaining the ____ level of output and
   employment during the ____.
   A) low; 1920s
   B) low; 1930s
   C) high; 1920s
   D) high; 1930s
   Answer: B
   Diff: 2 Type: MC Page Ref: 541
   Skill: Recall
   Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

   
   


6. 
   

   In the simple Keynesian model, equilibrium aggregate output is determined by ____.
   A) aggregate demand
   B) aggregate supply
   C) the national demand for labor
   D) the price level
   Answer: A
   Diff: 2 Type: MC Page Ref: 542
   Skill: Recall
   Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

   
   


7. 
   

   Under Keynesian analysis, aggregate demand can be written as ____.
   A) = C + I + G + NX
   B) = C + I + G - NX
   C) = C - I - G - NX
   D) = C + I - G - NX
   Answer: A
   Diff: 2 Type: MC Page Ref: 542
   Skill: Recall
   Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output