help me with these multiple questions

When referring to the Keynesian system, ____________________________ will not help reduce inflation, but may help a country get out of a recession.

	increased taxes on business investments
	increased spending by the government on health care
	decreased military spending
	increased consumer tax rate

Question

2 of25

An upward sloping short-run aggregate supply curve suggests that

	real GDP is determined by aggregate supply.
	prices and wages are completely inflexible.
	prices and wages are completely flexible.
	prices and wages adjust in part to short-run demand changes.

Question

3 of25

One reason for an increase in aggregate demand (AD) on the investment side is

	a rise in the expected rate of return.
	a rise in interest rates.
	a decrease in business confidence.
	an increase in wealth.

Question

4 of25

Aggregate demand (AD) is

	total spending, economy-wide, on durable goods and services.
	total spending, economy-wide, on domestic goods and services.
	equal to C + I + G + (M - X).
	total unplanned expenditure.

Question

5 of25

The Keynesian economic system is based on two notions. One of those assumptions is that

	an increase in government spending will cause the aggregate demand curve to shift to the left.
	prices and wages are sticky and do not adjust rapidly.
	an increase in business investment spending will cause the aggregate demand curve to shift to the left.
	people can afford a high level of government services.

Question

6 of25

One reason for an increase in aggregate demand (AD) on the net exports side is

	a rise in the expected rate of return.
	a rise in interest rates.
	an increase in foreign demand.
	an increase in the relative price of U.S. goods.

Question

7 of25

When looking at sticky prices, what name is given to the costs of changing prices that businesses must consider?

	Opportunity costs
	Internal costs
	Menu costs
	Customer costs

Question

8 of25

If U.S. goods are relatively less expensive than goods made in other countries, then

	U.S. exports are likely to rise.
	U.S. exports are likely to decline.
	U.S. imports are likely to rise.
	U.S. trade deficit will rise.

Question

9 of25

During the pandemic of 2020, stimulus checks were sent to qualifying individuals. The idea behind the stimulus was to

	increase aggregate supply (AS).
	increase aggregate demand (AD).
	shift the aggregate demand curve (AD) leftward.
	decrease inflation.

Question

10 of25

According to Keynes, disposable income is a factor that affects consumption. Disposable income is

	income after taxes and investments.
	income before taxes.
	income after taxes.
	income known as take-home pay.

Question

11 of25

The Keynesian view of the AD/AS model uses a short-run aggregate supply (SRAS) curve. This curve is

	insignificant in the short run.
	upward sloping at levels of output below potential input.
	downward sloping at levels of output below potential output.
	horizontal at levels of output below potential output.

Question

12 of25

The Keynesian side of economics focuses on explaining why recessions and depressions occur, as well as offering a ______________________ for minimizing their effects.

	pricing strategy
	policy prescription
	macroeconomic model
	set of menu costs

Question

13 of25

In the short run, aggregate demand (AD) is more likely to _________________ than aggregate supply.

	shift substantially
	remain unchanged
	decrease substantially
	increase slightly

Question

14 of25

One argument to support the reason why businesses avoid wage cuts is

	fear of reduced profits.
	that the industry won't support the cuts.
	it may lead to increased unemployment.
	it may depress morale and hurt the productivity of existing workers.

Question

15 of25

One reason for an increase in aggregate demand (AD) on the consumption side is

	an increase in taxes.
	a decrease in income.
	an increase in interest rates.
	a desire to save less.

Question

16 of25

Which macroeconomic model shows evidence that high unemployment may be accompanied by low inflation, and low unemployment may be accompanied by high inflation?

	Neoclassical expenditure-output model.
	Keynesian cross diagram.
	Phillips curve.
	Keynesian inflation trade-off model

Question

17 of25

An example of a service is

	gas to fill your tank.
	a visit to your doctor.
	a purchase of Apple stock.
	a motorcycle.

Question

18 of25

As indicated by the _____________________ argument, a market-oriented economy has no clear way to implement a plan of systematic wage reductions.

	sticky wage and price
	sticky wage
	Keynesian
	coordination

Question

19 of25

One reason that wages are downwardly sticky is due to

	competition of low-skilled labor.
	minimum wage laws.
	fear of reduced profits.
	the CPI.

Question

20 of25

Keynes stipulated that there are two determinants of investment. They are

	disposable income and wealth.
	expected future profits and interest rates.
	price and quantity.
	interest rates and labor cost.

Question

21 of25

Keynes notes that when looking at aggregate demand (AD), there are two factors that can cause shifts in import and export demand. Which of the following would be such a factor?

	Changes in populations
	Changes in relative growth rates between countries
	Changes in the discount rate
	Changes in savings behavior

Question

22 of25

Business investment is the most variable of all the components of aggregate demand (AD). If interest rates decline, business investment would be expected to

	not change.
	decrease.
	increase.
	all of the above.

Question

23 of25

An example of a durable good is

	groceries.
	a visit to the doctor.
	a purchase of Apple stock.
	a truck.

Question

24 of25

When the stock market in the United States fell nearly 40% from March 2008 to March 2009, consumption declined due to

	the wealth effect.
	the income effect.
	uncertainty regarding future profits.
	a fall in interest rates.

Question

25 of25

One reason for a decrease in aggregate demand (AD) on the consumption side is

	an increase in taxes.
	an increase in income.
	a decrease in taxes.
	a desire to save less.