In the four-sector Keynesian model,

a. increased government spending reduces aggregate expenditure.
b. increased taxes increase aggregate expenditure.
c. increased exports increase aggregate expenditure.
d. increased imports increase aggregate expenditure.


c. increased exports increase aggregate expenditure.

Economics

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Which of the following is an example of a supply shock?

A) a surprise increase of the money supply B) an increase in the price level C) a sharp increase in the price of oil D) an increase in government spending

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Explain how automatic stabilizers work

What will be an ideal response?

Economics