The Keynesian model is a good guide to ____ behavior and the classical model describes behavior in ______?

Related Mcqs:

1. Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero marginal cost of study production. If ABC publishing engages in tying the two products its best strategy is to charge a combined price of ?

   A. Rs 60
   B. Rs 90
   C. Rs 85
   D. Rs 75

2. Suppose that ABC publishing sells an economics textbook and accompanying study guide. Raheel is willing to pay Rs75 for the text and Rs15 for the study guide. Mariam is willing to spend Rs60 for the text and Rs25 for the study guide. Suppose both the book and study guide have a zero-marginal cost of study production. If ABC publishing charges separate price for both products its best strategy is to charge price that when combined, total ?

   A. Rs 85
   B. Rs 75
   C. Rs 80
   D. Rs 60

3. If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?

   A. falls; rise; falls; surplus
   B. is static; low; rise; deficit;
   C. falls; falls; falls; surplus
   D. rise; falls; rises; deficit

4. An advocate of the classical model of the economy would claim that unemployment is created when the ____ is above its equilibrium level in the ______?

   A. price level, aggregate economy
   B. tax rate, government budget
   C. wage rate, labor market
   D. interest rate, market for loanable funds

5. The Heckscher-Ohl in model rules out the classical model’s basis for trade by assuming that _________ is (are) identical between countries?

   A. factor endowments
   B. factor intensities
   C. technology
   D. opportunity costs

6. The multiplier accelerator model assumes ____ depends on ______?

   A. consumption expected future profits
   B. investment, interest rates
   C. investment expected future profits
   D. stock building interest rates

7. If the economy is in the though phase of the business cycle, aggregate demand ____ unemployment ______ inflation ______ and the current account of the balance of payments is likely to move towards ________?

   A. falls; falls; falls; surplus
   B. falls; rises; falls; surplus
   C. is static; low; rises; deficit
   D. rises; falls; rises; deficit

8. The long-run Phillips curve is ____ at the ____?

   A. horizontal, natural rate of inflation
   B. horizontal natural rate of unemployment
   C. vertical natural rate of inflation
   D. vertical equilibrium rate of unemployment

9. According to the simple Keynesian view the aggregate supply curve is ?

   A. downward sloping over all levels of output
   B. upward sloping over all levels of output
   C. horizontal until it reaches full capacity and then becomes vertical
   D. vertical until it reaches full capacity and then becomes horizontal

10. If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the average propensity to consume is what ?

    A. 0.8
    B. 800
    C. 810
    D. 0.81