Question

A vertical AS curve means that changes in GDP will be caused by

changes in potential output.

changes in aggregate demand.

cyclical unemployment.

Jontel got a raise, which may help the economy since

she will likely consume more goods and services.

she will likely put more money in savings.

she will likely hoard more money to prepare for fluctuations in the economy.

If Keynesian economists were analyzing the oncoming recession starting in 2007 from the housing market crash, what might they have predicted?

A decline in household wealth leading to a decrease in consumption expenditure.

Declining tax revenues with cause a decrease in government spending.

Expected future incomes increasing and an increase in home purchases.

Which of the following scenarios, from the Keynesian perspective, increases aggregate demand?

Decrease in net exports because of lack of foreign.

Increase in net exports because of foreign demand.

U.S. goods increasing in relative price.

The Keynesian economic framework is based on an assumption that

an increase in government spending will cause the aggregate demand curve to shift to the left.

people can afford a high level of government services.

prices and wages are sticky and do not adjust rapidly to changes in aggregate demand.

Answer 1

1. The vertical AS curve means that changes in gdp will be caused by Changes in potential output.

2.when jontel got arise in income it will help economy as she will consume more goods and services.

3. Keynesian economists predict that a decline in household wealth leading to a decrease in consumption expenditure.

4.Under Keynesian perspective aggregate demand increases due to increase in net exports because of foreign demand

5. The Keynesian economic framework is based on an assumption that prices and wages are sticky and do not adjust rapidly to changes in aggregate demand.