Multiple Choice
In the Keynesian aggregate expenditure graph (Figure 5-5) (in the text) ,the 45 degree line is meant to indicate that:
A) planned aggregate expenditure always equals aggregate income.
B) savings must equal investment.
C) actual aggregate expenditure must equal aggregate income.
D) actual income must equal planned income.
E) none of the above.
Correct Answer:

Verified
Correct Answer:
Verified
Q4: The equation for the balanced budget multiplier
Q5: In the simple Keynesian model,if the equilibrium
Q6: When comparing the autonomous expenditure multiplier in
Q7: According to Keynes,the least variable component of
Q8: Assume that b = .75 and autonomous
Q10: If policy makers desire a $30 increase
Q11: According to Keynes,the consumption-income relationship is shown
Q12: Discuss the role of the price level
Q13: An increase in the interest rate leads
Q14: Which of the following statements is (are)incorrect?<br>A)Consumption