S. Consumption, investment, government expenditure, exports and imports are all complementary elements of a market economy. some of the opposing elements present in a market economy. It components of aggregate demand. D. some of the building blocks of Keynesian analysis. 6. The equilibrium quantity of labor increases and the equilibrium wage decreases when: the demand for labor moves to the left, if wages are flexible. B. Labor supply shifts to the left if wages are flexible. C. The demand for labor shifts to the right if wages are flexible. D. labor supply moves to the right if wages are flexible, Qn Vw 7. See graph below. At point B: Inflation The economic growth of unemployment is weak or even negative. B. Production is expanding. C. Unemployment is very low D. Companies can raise prices. 8. See the table in question 9 above. Point C on the graph represents the level targeted by Keynesian macroeconomic policy. B. a moderate level of economic growth. C. a moderate level of unemployment in the economy. D. Moderate inflation and all of the above. 9. Which of the following government policies would be supported by neoclassical macroeconomic assumptions? emphasis on long-term growth and inflation control emphasis on short-term recession and inflation control C. emphasis on combating depression and cyclical unemployment D. l focus on real GDP and cyclical unemployment? the rise in price levels will increase the unemployment rate wages and real GDP are rigid over time – C. wages are maintained in the initial equilibrium D. the flexibility of wages and prices over time 11. In the neoclassical model, the AS curve shifts to the right over time as potential GDP increases. A. the macroeconomy readjusts to real GDP C. the level of real output falls B. productivity rises D. aggregate demand rises back to potential GDP. 12. In the neoclassical view, the economy has A. a rational tendency a tendency to be incapable of self-correction a tendency D. an immediate tendency
: Option C is correct. consumption, investment,
government expenditure, imports and exports are all included as
components of aggregate demand.
GDP calculation.
Answer 6: Option D is correct. The balance amount of
labor increases and equilibrium wages fall when labor
supply shift to the right when wages are flexible
Answer 7: Option A is correct. As at point B unemployment
is very high and the inflation rate is falling, but the growth of a
the economy declined.
: Option A is correct. How to focus on long-term growth
and inflation in an economy.
0: Option D is correct. Wages and prices are flexible
overtime as in the neoclassical model.