In the Keynesian Model, If Total Spending by Households, Businesses

Multiple Choice

In the Keynesian model, if total spending by households, businesses, government units and foreign buyers is less than the total output produced in the economy, then:

A) total output will decrease.
B) total spending will increase as long as the economy is not at full employment.
C) total output will decrease and total spending will increase as long as the economy is not at full employment.
D) any of the above could happen.