1.
In the neo-classical model, the aggregate supply curve has threeranges depending on how far the economy is from fullemployment.
a. True
b. False
2. Â
Suppose you are given the following fixed-price Keynesianmodel:
C = 480 + 0.9Yd
I = 200
G = 100
X = 200
M = 100 + 0.1Yd
T = 100.
What is the equilibrium level of GDP?
| a. | 1180 |
| b. | 5500 |
| c. | 4400 |
| d. | 4000 |
| e. | 3200 |
3. Â
In the question above, at equilibrium the level of consumptionspending is $3990
a. True
b. False
4.
The aggregate demand curve can be derived by looking atdifferent levels of output along the production function.
True
False
