In the simple Keynesian model of the determination of income, planned investment is
A) an endogenous parameter.
B) autonomous and thus an exogenous parameter.
C) explained by the model of income determination.
D) None of the above.
B
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Sirius has just finished high school and started looking for his first job, but has not yet found one. Other things the same, the unemployment rate
a. and the labor-force participation rate both increase. b. increases, and the labor-force participation rate is unaffected. c. is unaffected, and the labor-force participation rate increases. d. and the labor-force participation rate are both unaffected.
As the price level rises,
a. the exchange rate falls, so net exports fall. b. the exchange rate falls, so net exports rise. c. the exchange rate rises, so net exports fall. d. the exchange rate rises, so net exports rise.