In the Keynesian cross model, government spending as a function of national income is a(n):
a. horizontal line at a fixed level of expenditure.
b. vertical line at a fixed level of real GDP
c. upward-sloping curve.
d. downward-sloping curve.
a
You might also like to view...
In monopolistic competition, free entry and free exit mean that in the long run firms in the industry make zero economic profit
Indicate whether the statement is true or false
Checkable and debitable accounts in commercial banks and other financial institutions are classified as money because
A) they are not liabilities of the banks. B) they sometimes earn an interest income for the depositor. C) they are generally acceptable in the payment of debt. D) banks hold currency in their vaults equal to the value of demand deposits.
If the value of the domestic currency depreciates:
a. Aggregate demand rises, but aggregate supply does not change. b. Aggregate demand falls and aggregate supply rises. c. Aggregate demand rises and aggregate supply rises. d. Neither aggregate demand nor aggregate supply change. e. Aggregate demand rises and aggregate supply falls.
Refer to the information provided in Figure 3.11 below to answer the following question(s).
Figure 3.11Refer to Figure 3.11. An increase in supply is represented by the movement from
A. S2 to S1. B. Point B to Point A along supply curve S2. C. S2 to S3. D. Point B to Point C along supply curve S2.