Multiple Choice
On the graph of GDP, government spending and net exports are:
A) horizontal lines because they are autonomous expenditures.
B) vertical lines because the level of spending is fixed.
C) upward sloping because they increase as GDP increases.
D) downward sloping because they decrease as GDP increases.
Correct Answer:
Verified
Correct Answer:
Verified
Q85: Exhibit 9-5 Keynesian aggregate expenditures model where
Q86: At the equilibrium level of real GDP,
Q87: If consumption expenditures are $200 billion, total
Q88: Using the aggregate expenditure-output model, assume the
Q89: If the marginal propensity to consume (MPC)
Q91: To close a recessionary gap using fiscal
Q92: In the aggregate expenditures model, if aggregate
Q93: Suppose equilibrium real GDP is currently at
Q94: If the spending multiplier is equal to
Q95: When the spending of consumers, businesses, government,