On the 45-degree line diagram, for points that lie above the 45-degree line

A) planned aggregate expenditure is less than GDP.
B) planned aggregate expenditure is greater than GDP.
C) planned aggregate expenditure is equal to GDP.
D) planned aggregate expenditure is less than aggregate income.

B

Economics

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A straight-line production possibilities curve takes this shape because

A) the opportunity cost of producing a good is constant. B) the opportunity cost of producing more of a good is decreasing. C) resources are better suited for producing one output than another. D) resources are fixed.

Economics

Using the Keynesian model, the effect of a decrease in the effective tax rate on capital would be to cause ________ in the real interest rate and ________ in output in the short run.

A. a decrease; no change B. an increase; an increase C. no change; a decrease D. a decrease; a decrease

Economics