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Evalute of macroeconomic theories and production possibilities curve.

Disputes over Macro Theory and Policy

Use the following to answer problems 1-2:

691_macroeconomic theories.jpg

1. Refer to the above diagrams. Classical theory is best portrayed by:

2. Refer to the above diagrams. Keynesian theory is best portrayed by:

3. According to the equation of exchange, changes in the money supply can affect:

Use the following to answer problems 4:

Answer the next problem(s) on the basis of the following information for a hypothetical economy. All values are in nominal terms.

M = $100

V = 2

Ca = $160

Xn = $10

G = $10

4. Refer to the above information. Nominal GDP is:

 

International Trade

Use the following to answer problems 4-5:

1709_macroeconomic theories 2.jpg

5. Refer to the above diagrams. The solid lines are production possibilities curves; the dashed lines are trading possibilities curves. The data suggest that:

6. Refer to the above diagrams. The solid lines are production possibilities curves; the dashed lines are trading possibilities curves. The trading possibilities curves imply that:

7. In the U.S. balance of payments, foreign purchases of assets in the United States are a:

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M917996

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