Consumption, investment, government spending, exports, and imports are:

If a Phillip curve shows that unemployment is low and inflation is high in the economy, then that economy:

Keynesian economics focuses on explaining why recessions and depressions occur, as well as offering a ______________________ for minimizing their effects.

If markets throughout the global economy all have flexible and continually adjusting prices, then:

If a Phillips curve shows that unemployment is high and inflation is low in the economy, then that economy:

Suppose that out of the original 100 of government spending, 33 will be recycled back into purchases of domestically produced goods and services in the second round and 10.89 is spent in the third round. Following this multiplier effect, what will the value of the total aggregate expenditures be after the fourth round in the cycle is completed?

The neoclassical perspective on macroeconomics emphasizes that in the long run, the economy seems to rebound back to its _____________ and its ____________________.

The theory of _____________________ holds that people will use all information available to them to form the most accurate possible expectations about the future.

Using a neoclassical model, what will the level of cyclical unemployment be when an economy is producing at potential GDP?

At a macroeconomic level, the theory of rational expectations points out that if the ______________________ is vertical over time, then people should rationally expect this pattern.

Suppose that a rise in business confidence has led to more investment in the economy and higher levels of output. In the short-run Keynesian analysis, the rise in aggregate demand will:

In the neoclassical version of the AD/AS model, which of the following should you use to represent the AS curve?

The Keynesian view of economics assumes that:

Which of the following is a distinguishing characteristic of the neoclassical view?