Multiple Choice
In the Keynesian AE model,what impact does an increase in real wealth have on AE?
A) It shifts AE down, increases inventories, and reduces output.
B) It shifts AE up, increases inventories, and causes an increase in output.
C) It shifts AE up, reduces inventories, and causes an increase in output.
D) It shifts AE down, reduces inventories, and reduces output.
Correct Answer:

Verified
Correct Answer:
Verified
Q2: When does stagflation occur?<br>A)when real output rises
Q3: What do demand-pull inflation and cost-push inflation
Q4: When there is a temporary sharp reduction
Q5: In the Keynesian AE model,if the autonomous
Q6: When SRAS and AD intersect at a
Q8: When wages rise 15 percent,under which of
Q9: If real output is currently greater than
Q10: What would be the effect on short-run
Q11: When output is higher than the intersection
Q12: When SRAS and AD intersect at the