In the Keynesian aggregate consumption-income graph, the vertical distance between the consumption function and the 45-degree line shows the:
a. amount of savings (or dissavings) at that level of disposable income.
b. amount of disposable income at that level of consumption.
c. increase in planned business investment at each level of inflation.
d. increase in income that causes each change in real GDP.
a
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Along a downward-sloping linear demand curve
A) the marginal utility from the consumption of each unit of the good rises and the total utility from consuming larger quantities remain constant. B) the marginal utility from the consumption of each unit of the good and the total utility from consuming larger quantities remain constant. C) the marginal utility from the consumption of each unit of the good falls and the total utility from consuming larger quantities increases. D) the marginal utility from the consumption of each unit of the good and the total utility from consuming larger quantities increase.
The aggregate demand curve reflects:
a. a direct relationship between the price level in an economy and the real GDP demanded b. a direct relationship between real GDP demanded and total unemployment. c. an inverse relationship between the price level in an economy and the nominal GDP demanded. d. an inverse relationship between the price level in an economy and the real GDP demanded. e. an inverse relationship between the real GDP demanded and total unemployment.