Refer to the above figure. Suppose the economy had been at point A and now is at B. What could have caused the movement to B?
A) Unusually good weather causes the wheat crop to be larger than normal.
B) Both the labor force and the population increased.
C) Winter storms cause factories in the north to be shut down for several weeks.
D) Government spending increased causing aggregate demand to increase.
D
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In the Keynesian model, whenever planned investment is less than planned saving
A) the amount of planned investment will decrease, and real GDP will decrease. B) there will be an unplanned inventory increase, and real GDP will eventually decrease. C) there will be an unplanned inventory decrease, and real GDP will eventually increase. D) the amount of planned investment will decrease, and real GDP will remain unchanged.
Which monetary policy rule needs a stable demand for money to work well?
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a. True b. False Indicate whether the statement is true or false