In the Keynesian cross model, when the level of aggregate demand in an economy is above the 45-degree line, ____
a. the level of aggregate expenditures in the economy will be lower than the level of output
b. inventories will fall below the planned level
c. businesses will decrease their level of production
d. there will be an unexpected decrease in the sales of businesses
b
You might also like to view...
A free market can be defined as a market structure where all exchanges are voluntary, and prices are free to fluctuate. Does a perfectly competitive market qualify as a free market?
What will be an ideal response?
A south sea island produces only coconuts. In 2012, the price of a coconut is $1 and the quantity produced is 200. In 2013, the price of a coconut is $1.50 and the quantity produced is 250. 2012 is the base year. Real GDP in 2013 is ________
A) $375 B) $350 C) $200 D) $250 E) $1.50
A normal good is a good for which the demanded decreases as income decreases, holding everything else constant
Indicate whether the statement is true or false
In 1999, what percentage of K-12 students attended private schools?
a. Around 6 percent b. Around 9 percent c. Around 11 percent d. Around 14 percent