In the Keynesian model, investment, government spending, and net exports are treated as autonomous expenditures, which means they are independent of:
a. expectations.
b. the price level.
c. political processes.
d. real GDP.
d
You might also like to view...
An important problem facing the Fed is that
A) the goals for economic growth and price stability may conflict in the short run. B) it lost effective control over the monetary base. C) it has been given responsibility for meeting policy goals, but true control over monetary policy remains with Congress. D) it has been given responsibility for meeting policy goals, but true control over monetary policy remains with the President.
In a competitive economy, workers will be paid according to their
A) status. B) age. C) marginal productivity. D) need.
If marginal utility of apples is diminishing and is a positive amount, consuming one more apple will cause
A) total utility to decrease. B) a consumer to get no satisfaction from consuming apples. C) a consumer's total utility to increase. D) a consumer to go beyond her optimal consumption of apples.
Refer to the information. The multiplier for this economy is:
A. 2.
B. 2.5.
C. 3.
D. 4.