Economics Test

SmootSmack · 11-22-2004, 12:59 AM

Quote:

Originally Posted by That Guy

the problem with google and your keynes quote... you searched for "were" when you meant to search for "we're"...

here's a bio link:
http://www.brainyencyclopedia.com/en...rd_keynes.html

his main thing was to save surplus in good times to even out bad times, so i'd say A, since he was all for government intervention during a depression (whereas C suggests a view of letting it run its course)...

Unless I'm reading it wrong, that question asks what the conventional wisdom of classical economists was, and that was laissez-fair approach or C, right?

That Guy · 11-22-2004, 01:03 AM

everything2.com post on the quote:
http://everything2.com/index.pl?node...tnode_id=87992

and on keynes:
http://everything2.com/index.pl?node...node_id=732458

and oops, i misread the question, the answer is C, cause the question asked what the quote was in response to... my bad

That Guy · 11-22-2004, 01:05 AM

so:

1. Which of the follwing with SHIFT the consumption function downward
c. Legislation making credit harder to obtain

3)Keynes once remarked that, in the long run, were all dead. He was responding to the conventional wisdom of classical economics who aregued that..
c. Depression was only a short run, temporary departure from full employment equilibrium

that's two down at least

That Guy · 11-22-2004, 01:14 AM

link has the direct quote...
http://216.239.39.104/search?q=cache...Baptiste&hl=en

1) The French Economics Jean Baptiste say transformed the equality of total outpout and total spending inot a law that can be expressed as follows:
c) Supply creates its own demand

and btw, its Jean Baptiste Say... there's 2 million Jean Baptistes running around

That Guy · 11-22-2004, 01:19 AM

http://everything2.com/index.pl?node_id=1141020

2) If the economy were left on its own without the interference of government or the Fed, it would move towards an equiliburium rate that would produce, with only minor interruptions, full employment without inflation. What school supports this view?
c. Monetarism

That Guy · 11-22-2004, 01:25 AM

http://everything2.com/index.pl?node...ode_id=1141024

"Keynes felt that by lowering wage, you were lowering the money in circulation, which would reduce the demand. What would basically happen was that there would be less money available to invest."

it's all about investing in an ecomony, not saving, I'd go with A...

6) Consider the Keynesian consumtion function. If disposable income is greater than the break even level of disposal income, then the households will be:
a. investing

That Guy · 11-22-2004, 01:30 AM

5) If the economy is experiencing unemplyment equilibrium, the Keynesian school recommends that the government:
b) Undertake the fiscal policy to stimulate aggregate demand

keynesians go into deficit spending so businesses are encouraged to increase wages, which in turn increases the money available to invest (ie demand)...

That Guy · 11-22-2004, 01:32 AM

4) Keynesians:
d) Focuse on increasing aggregate demand in order to stimulate the economy

see post above...

that covers all the questions then... hope this helps (i do believe i've provided the correct answers, but no warranties

)

That Guy · 11-22-2004, 01:38 AM

UGH, sorry

2) If the economy were left on its own without the interference of government or the Fed, it would move towards an equiliburium rate that would produce, with only minor interruptions, full employment without inflation. What school supports this view?
a. Classical

monetarism is very involved with inflation etc, classical economics believes controlling the money supply controls inflation... so i only disagree with SS's answer to number 6 from the first batch

1) C
2) A
3) C
4) D
5) B
6) A

and

1) c (choices were c, d, or e... i believe its the first one)

sorry for the couple of corrections in there, this is why taking tests at 2am is a bad idea...

MTK · 11-22-2004, 09:09 AM

LOL this is great, come to the Warpath discuss the Redskins and get help with your homework!

Redskins_P · 11-22-2004, 09:25 AM

I know! LOL. I'm gonna have to holla at you guys next semester! Anyone BA majors?

MTK · 11-22-2004, 10:02 AM

We should all post our areas of expertise and education backgrounds, LOL.

Gmanc711 · 11-22-2004, 10:29 AM

Suck it in guys.... theres a couple more left. ( who has a 100 QUESTION test anyways???) First though, I seriously cant thank you guys ( Smootsmack/That Guy) enough for the help, you're really helping me out bigtime, and anyone else who tried but just dosent know. I really really appreciate the time, so thank you.

The Final Instalment in GMANC711's Economics test.....

23. Suppose Equiliburum GDP is currently 800 Billion and investment is 100 billion. If an increase in the interest rate reduced investment from 100 billion to 75 billlion, and the mpc is .8, the new level of Equiliburm is...
a. 500
b. 600
c. 675
d. 775
e. 800 (all in billions)

25. Assume that an economy's real GDP muliplier is 4. If this economy is in equilibrium at 2,000 billion, then which one of the following actions will bring it to a full employment equiliburm of 1,500 billion?
a. 500 billion spending cut
b. 500 billion spending increase
c. 125 billion spending cut
d. 125 billion spending increase
e. 2,000 billion spending cut

36. The full emplyment level of real GDP can be represented on an aggregate suplly and demand diagram as a:
a. vertical line
b. upward-sloping line
c. horixontal line
d. downard sloping line ( I think its A, but I'm not sure)

40. Suppose the economy is on the classical range of the aggregat supply curve, and has a problem with inflation. According to the Keynesian theroy, which of the following is an appropirate discretionary fiscal policy to use in this situation?
a. A reduction in the money supply
b. Less gov regulation
c. increase in federal spending
d. higher taxes

Well, *I THINK* that is the end; as I have awnsers for most of the other problems. Once again, I cant thank you guys enough for the help with this. Matty, we should start a hw thread. So far Joe Crisp is the only one to help get me an A in a class, so if Smootsmack/Thatguy are succeful, we may have a competition brewing, LOL. Thanks guys.

SmootSmack · 11-22-2004, 11:28 AM

Um, I think you're right about A for question number 3. As for the others, I'll have to think about it

ok, Redskins P, what's your question?

Redskins_P · 11-22-2004, 11:49 AM

Quote:

Originally Posted by smootsmack

Um, I think you're right about A for question number 3. As for the others, I'll have to think about it

ok, Redskins P, what's your question?

I'll holla at you in a couple of months SS! Thanks though.

11-22-2004, 10:29 AM	#28
Gmanc711 Thank You, Sean. Join Date: Feb 2004 Location: Gaithersburg, MD Age: 39 Posts: 7,506	Suck it in guys.... theres a couple more left. ( who has a 100 QUESTION test anyways???) First though, I seriously cant thank you guys ( Smootsmack/That Guy) enough for the help, you're really helping me out bigtime, and anyone else who tried but just dosent know. I really really appreciate the time, so thank you. The Final Instalment in GMANC711's Economics test..... 23. Suppose Equiliburum GDP is currently 800 Billion and investment is 100 billion. If an increase in the interest rate reduced investment from 100 billion to 75 billlion, and the mpc is .8, the new level of Equiliburm is... a. 500 b. 600 c. 675 d. 775 e. 800 (all in billions) 25. Assume that an economy's real GDP muliplier is 4. If this economy is in equilibrium at 2,000 billion, then which one of the following actions will bring it to a full employment equiliburm of 1,500 billion? a. 500 billion spending cut b. 500 billion spending increase c. 125 billion spending cut d. 125 billion spending increase e. 2,000 billion spending cut 36. The full emplyment level of real GDP can be represented on an aggregate suplly and demand diagram as a: a. vertical line b. upward-sloping line c. horixontal line d. downard sloping line ( I think its A, but I'm not sure) 40. Suppose the economy is on the classical range of the aggregat supply curve, and has a problem with inflation. According to the Keynesian theroy, which of the following is an appropirate discretionary fiscal policy to use in this situation? a. A reduction in the money supply b. Less gov regulation c. increase in federal spending d. higher taxes Well, I THINK that is the end; as I have awnsers for most of the other problems. Once again, I cant thank you guys enough for the help with this. Matty, we should start a hw thread. So far Joe Crisp is the only one to help get me an A in a class, so if Smootsmack/Thatguy are succeful, we may have a competition brewing, LOL. Thanks guys. __________________ #21

11-22-2004, 11:28 AM	#29
SmootSmack Uncle Phil Join Date: Feb 2004 Posts: 45,256	Um, I think you're right about A for question number 3. As for the others, I'll have to think about it ok, Redskins P, what's your question? __________________ You're So Vain...You Probably Think This Sig Is About You

11-22-2004, 01:03 AM	#17
That Guy Living Legend Join Date: Jun 2004 Location: VA Age: 42 Posts: 17,620	everything2.com post on the quote: http://everything2.com/index.pl?node...tnode_id=87992 and on keynes: http://everything2.com/index.pl?node...node_id=732458 and oops, i misread the question, the answer is C, cause the question asked what the quote was in response to... my bad

11-22-2004, 01:05 AM	#18
That Guy Living Legend Join Date: Jun 2004 Location: VA Age: 42 Posts: 17,620	so: 1. Which of the follwing with SHIFT the consumption function downward c. Legislation making credit harder to obtain 3)Keynes once remarked that, in the long run, were all dead. He was responding to the conventional wisdom of classical economics who aregued that.. c. Depression was only a short run, temporary departure from full employment equilibrium that's two down at least

11-22-2004, 01:14 AM	#19
That Guy Living Legend Join Date: Jun 2004 Location: VA Age: 42 Posts: 17,620	link has the direct quote... http://216.239.39.104/search?q=cache...Baptiste&hl=en 1) The French Economics Jean Baptiste say transformed the equality of total outpout and total spending inot a law that can be expressed as follows: c) Supply creates its own demand and btw, its Jean Baptiste Say... there's 2 million Jean Baptistes running around

11-22-2004, 01:19 AM	#20
That Guy Living Legend Join Date: Jun 2004 Location: VA Age: 42 Posts: 17,620	http://everything2.com/index.pl?node_id=1141020 2) If the economy were left on its own without the interference of government or the Fed, it would move towards an equiliburium rate that would produce, with only minor interruptions, full employment without inflation. What school supports this view? c. Monetarism

11-22-2004, 01:25 AM	#21
That Guy Living Legend Join Date: Jun 2004 Location: VA Age: 42 Posts: 17,620	http://everything2.com/index.pl?node...ode_id=1141024 "Keynes felt that by lowering wage, you were lowering the money in circulation, which would reduce the demand. What would basically happen was that there would be less money available to invest." it's all about investing in an ecomony, not saving, I'd go with A... 6) Consider the Keynesian consumtion function. If disposable income is greater than the break even level of disposal income, then the households will be: a. investing

11-22-2004, 01:30 AM	#22
That Guy Living Legend Join Date: Jun 2004 Location: VA Age: 42 Posts: 17,620	5) If the economy is experiencing unemplyment equilibrium, the Keynesian school recommends that the government: b) Undertake the fiscal policy to stimulate aggregate demand keynesians go into deficit spending so businesses are encouraged to increase wages, which in turn increases the money available to invest (ie demand)...

11-22-2004, 01:32 AM	#23
That Guy Living Legend Join Date: Jun 2004 Location: VA Age: 42 Posts: 17,620	4) Keynesians: d) Focuse on increasing aggregate demand in order to stimulate the economy see post above... that covers all the questions then... hope this helps (i do believe i've provided the correct answers, but no warranties )

11-22-2004, 01:38 AM	#24
That Guy Living Legend Join Date: Jun 2004 Location: VA Age: 42 Posts: 17,620	UGH, sorry 2) If the economy were left on its own without the interference of government or the Fed, it would move towards an equiliburium rate that would produce, with only minor interruptions, full employment without inflation. What school supports this view? a. Classical monetarism is very involved with inflation etc, classical economics believes controlling the money supply controls inflation... so i only disagree with SS's answer to number 6 from the first batch 1) C 2) A 3) C 4) D 5) B 6) A and 1) c (choices were c, d, or e... i believe its the first one) sorry for the couple of corrections in there, this is why taking tests at 2am is a bad idea...

11-22-2004, 09:09 AM	#25
MTK \m/ Join Date: Feb 2004 Age: 52 Posts: 99,832	LOL this is great, come to the Warpath discuss the Redskins and get help with your homework!

11-22-2004, 09:25 AM	#26
Redskins_P Fight for old DC! Join Date: Feb 2004 Location: Aldie, VA Age: 47 Posts: 4,101	I know! LOL. I'm gonna have to holla at you guys next semester! Anyone BA majors?

11-22-2004, 10:02 AM	#27
MTK \m/ Join Date: Feb 2004 Age: 52 Posts: 99,832	We should all post our areas of expertise and education backgrounds, LOL.

Economics Test

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