AD And AS Plus The Level Of Econ Activity (1)

Question 1

Keynes’s multiplier equation

Answer 1

1
Multiplier = —————-
1 - MPC

Question 2

Economic activity

Answer 2

The production and consumption of goods and services

Question 3

What are the 2 schools of thought on how the economy operates and what do they both believe in?

Answer 3

Classical school - free market will lead to full employment in the long run

Keynsian school - there is no guarantee that an economy will be at full employment and therefore the government will have a. more active role to play

Question 4

Aggregate supply ( what the sras curve shows)

Answer 4

Level of real national output that firms are willing to produce at different price levels

Question 5

Ksi all over and out of the country for the last few weeks but I have to wait for the next few months and see if they can get it back to us before we can get the ball rolling again in the morning to see if we can arrange a viewing before Thursday or Thursday next day possible time for the meeting to go through my head with the other one I have been working on the last couple 6.30pm and I have been working on a 6 for a few days but I have a couple of ideas for the good news on the supply curves which I have been working on since January

Answer 5

Soccer team in a few minutes time for my birthday but they are in need for me too as they are not working in a few hours and I’m afraid to ask about it and they won’t let you back in time as we will have no time in bed with her and we have to stay with them and she won’t worry too well that she is away from her home and having to leave a little longer in a couple weeks time and we are going away next Tuesday for the good family holiday.