In the Keynesian model, a $1 billion increase in autonomous consumption leads to ________ in short-run equilibrium output.
A. a $1 billion increase
B. no change
C. a $1 billion decrease
D. a greater than $1 billion increase
Answer: D
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The value of U.S. imports is ________.
A. added to exports when calculating GDP, because imports reflect spending by Americans B. subtracted from exports when calculating GDP, because imports do not constitute production in the United States C. subtracted from exports when calculating GDP, because imports do not constitute spending by Americans D. added when calculating GDP, because imports do not constitute production in the United States
Jon spends all of his income on energy drinks (E) regardless of the price and his income. Derive Jon's demand equation for energy drinks, E*(p,Y)
What will be an ideal response?
Which of the following countries would find it easiest to achieve rapid growth in per capita GDP?
a. United States b. United Kingdom c. France d. Mexico
One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.