In the simple Keynesian aggregate expenditure model of an economy, changes in investment or government spending will lead to a change in which of the following?
A) the price level
B) the level of output and employment
C) interest rates
D) the aggregate supply
E) the demand for money
Ans: B) the level of output and employment
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Refer to Figure 28-5. Consider the Phillips curves shown in the above graph. We can conclude from this graph that
A) ceteris paribus, a fall in the rate of inflation to 5 percent will increase unemployment to 7.5 percent in the short run. B) the natural rate of unemployment in this economy is 5.5 percent. C) the expected rate of inflation in this economy is 10 percent. D) All of the above are correct.
What was/were the most enduring legacy/legacies of the 1960s according to Hughes and Cain (2011)?
(a) Medicare and the War on Poverty (b) The violent antiwar movement (c) The environmental, consumer and women's movements (d) The black power movement