Multiple Choice
The following figure illustrates the Keynesian model of equilibrium in the macroeconomy.
-If the economy were operating at an output level of $4 trillion, you would expect business inventories to be:
A) zero.
B) increasing.
C) decreasing.
D) unchanging.
Correct Answer:
Verified
Correct Answer:
Verified
Q97: In the Keynesian model, total spending in
Q98: Explain how the Great Depression weakened the
Q99: An important assumption of classical economic theory
Q100: The argument that individual decision making in
Q101: Explain why Keynesian and new Keynesian economists
Q103: A primary assumption of new classical economics
Q104: The interest rate effect, the wealth effect,
Q105: What are the interest rate effect, the
Q106: How does the aggregate supply curve appear
Q107: In the Keynesian model, when total spending