Keynesian Economics and Multiple Choice Points

Assessment: Lesson 7 Preview Questions
Instructions
You have completed the Lesson 7 Preview Questions.
Assessment Score
Attempt Score: 8.00 out of a possible 10.00 (80.0%)
Assessment Score: 8.00 out of a possible 10.00 (80.0%)
Assessment Time: 2462 minutes
Question 1:
Economics began as a field of study in 1776 with the publication of An Inquiry into the Wealth of Nations by __________.
Type: Multiple Choice
Points awarded: 1.00 / 1.00
Your answer(s): •Adam Smith
Correct answer(s): Jean-Baptiste Say
John Maynard Keynes
Your Professor Adam Smith
Question 2:
According to Say’s Law: If production is created then there _______ be sufficient funds from this creation to purchase everything that is produced.
Type: Multiple Choice
Points awarded: 1.00 / 1.00
Your answer(s): •will
Correct answer(s): will not will sometimes will none of the above
Question 3:
According to _____________ Theory, an economy is assumed to always be at full employment (or very quickly returning to that level).
Type: Multiple Choice
Points awarded: 1.00 / 1.00
Your answer(s): •Classical
Correct answer(s): Keynesian
Smithian
Classical
Traditional
Question 4:
In the Classical Theory, if Households decrease their spending then Businesses will reduce product prices, but will also _____________ .
Type: Multiple Choice
Points awarded: 1.00 / 1.00
Your answer(s): •decrease wages
Correct answer(s): increase interest rates decrease wages increase replacement inventories increase investment
Question 5:
Classical Theory assumes that the economy is capable of adjusting itself to full employment without _________________.
Type: Multiple Choice
Points awarded: 1.00 / 1.00
Your answer(s): •government
Correct answer(s): price flexibility wage flexibility interest rate flexibility government
Question 6:
In the Classical stage of the figure below, a decrease in Aggregate Demand will only result in a movement _____________ along the