In the Keynesian model, a $5 billion decrease in autonomous planned investment leads to ________ in short-run equilibrium output.
A) a $5 billion increase
B) a greater than $5 billion decrease
C) no change.
D) a $5 billion decrease
Correct Answer:
Verified
Q101: If short-run equilibrium output equals 10,000, the
Q102: Contractionary policies are government stabilization policies intended
Q103: In the Keynesian model, a $1 billion
Q104: In the short-run Keynesian model, to close
Q105: In the short-run Keynesian model, to close
Q107: Government policies that are used to affect
Q108: Changes in government purchases affect planned spending
Q109: In the basic Keynesian model, an increase
Q110: Changes in taxes and transfers affect planned
Q111: Stabilization policies are government policies used to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents