In the Keynesian cross diagram, a decline in autonomous consumer expenditure causes the aggregate demand function to shift ________, the equilibrium level of aggregate output to fall, and the IS curve to shift to the ________,
everything else held constant.
A) up; left
B) up; right
C) down; left
D) down; right
C
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The policies of the New Deal in the 1930's, in an effort to alleviate unemployment, paralleled those of
a. Keynesian analysis. b. supply-side economics. c. Say’s Law. d. the classical theory.
The spreading of fixed costs over more output explains why the long-run average cost falls as output rises
a. True b. False
When economists use the term "factors of production," they mean
a. labor, capital, and money b. labor, capital, land and money c. labor, capital, land and entrepreneurship d. labor, land, money and entrepreneurship e. money and entrepreneurship
Gross National Product equals:
a) Net National Product adjusted for inflation b) Gross Domestic Product adjusted for inflation c) Gross Domestic Product plus net property income from abroad d) Net National Product plus net property income from abroad