When constructing a basic macroeconomic model, several assumptions (not realistic, but necessary to simplify the analysis) are made.Which of the following are assumed to be constant?
A) The price level
B) Consumption spending
C) The value of fixed-money assets
D) Taxes
Correct Answer:
Verified
Q55: John Maynard Keynes concluded that investment spending
Q56: If savings exceeds investment at full employment,
Q57: In a market economy, the decisions about
Q58: In a simple macroeconomic model, only one
Q59: At the equilibrium level of income, it
Q61: Equilibrium GDP on the demand side occurs
Q62: Real wealth changes with
A)disposable income.
B)consumption.
C)the price level.
D)GDP.
Q63: A rising price level should shift the
Q64: A higher price level would mean _
Q65: If the economy is in equilibrium, it
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