In the Keynesian model, investment spending is an autonomous expenditure
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 27-6. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely pursue
A) expansionary automatic stabilizers. B) contractionary monetary policy. C) contractionary fiscal policy. D) expansionary monetary policy. E) expansionary fiscal policy.
When supply and demand for a product increase simultaneously, we
A) can predict that both the market clearing price and the equilibrium quantity will increase. B) can predict that both the market clearing price and the equilibrium quantity will decrease. C) cannot predict the market clearing price, but know that the equilibrium quantity will increase. D) cannot predict the change in either the equilibrium quantity or the market clearing price.