Multiple Choice
In the aggregate expenditures model, equilibrium occurs if:
A) aggregate expenditures (AE) are greater than GDP.
B) aggregate expenditures (AE) are less than GDP.
C) there is no unplanned inventory depletion or accumulation.
D) consumption equals investment.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: The impact of the multiplier effect is
Q3: Exhibit 9-6 Keynesian aggregate expenditure model when
Q4: Assume that full-employment real GDP is Y
Q5: If the marginal propensity to consume (MPC)
Q6: An inflationary gap is the amount by
Q8: In the aggregate expenditures model, an increase
Q9: Superhighways, public housing facilities, and defense projects
Q10: Exhibit 9-5 Keynesian aggregate expenditures model where
Q11: Use the aggregate expenditures model and assume
Q12: If the MPC equals 0.80 then:<br>A) the