Multiple Choice
The equilibrium of the Keynesian cross shows:
A) determination of equilibrium income and the interest rate in the short run.
B) determination of equilibrium income and the interest rate in the long run.
C) equality of planned expenditure and income in the short run.
D) equality of planned expenditure and income in the long run.
Correct Answer:
Verified
Correct Answer:
Verified
Q41: In the Keynesian-cross model, if taxes are
Q50: The LM curve generally determines:<br>A) income.<br>B) the
Q55: Equilibrium levels of income and interest rates
Q70: According to the Keynesian-cross analysis, when there
Q72: Consider a closed economy to which the
Q73: According to classical theory, national income depends
Q77: Two identical countries, Country A and Country
Q78: In the Keynesian-cross model, if the MPC
Q80: Exhibit: Market for Real Money Balances <img
Q82: The government-purchases multiplier indicates how much _