The 45-degree line in the Keynesian income-expenditure graph indicates
a. the basic size of the spending flow.
b. points where total output is equal to aggregate expenditure.
c. the size of the multiplier.
d. the size of the marginal propensity to save.
b. points where total output is equal to aggregate expenditure.
You might also like to view...
Capital deepening is the only mechanism by which economies can grow
Indicate whether the statement is true or false
What limits the quantity of money that the banking system can create?
What will be an ideal response?
Some firms require consumers to pay an initial fee for the right to buy their product and an additional fee for each unit of the product they purchase. This practice is referred to as
A) dual pricing. B) odd pricing. C) a two-part tariff. D) intertemporal pricing.
What are the implications of the quantity theory of money for monetary policy and price stability?
What will be an ideal response?