1>A basic numerical version of the Keynesian model is given as follows: C = 200 + 0.8Yd; I = 300; G = 250: T = 150. Determine the equilibrium level of output

2>Given an upward sloping AS curve (not vertical), a decrease in aggregate demand, such as that due to a decrease in government purchases causes

3>Which of the following would cause the aggregate demand curve to shift to the right?

Select one:

a.an increase in purchases by the Jamaican government

b.an increase in taxes

c.an appreciation of the Jamaican dollar

d.an increase in real interest rates

4>Keynesians believe

Select one:

a.changes in government spending and taxes cause a movement along the aggregate demand curve

b.that changes in the money supply cannot cause the aggregate demand curve to shift.

c.that changes in government spending and taxes cause the aggregate demand curve to shift.

d.that changes in consumer and business willingness to spend cannot cause the aggregate demand curve to shift.

5>>All the following are potential benefits of an increase in investment EXCEPT:

Select one:

a.A decrease in import levels

b.An increase in future consumption

c.An increase in GDP

d.A decrease in employment