An increase in real GDP leads to
A) a decrease aggregate planned expenditure.
B) no change in aggregate planned expenditure.
C) an increase in aggregate planned expenditure.
D) a change in aggregate planned expenditure but whether the change is an increase or a decrease depends on whether nominal GDP increases or decreases.
Correct Answer:
Verified
Q1: Disposable income is
A) income minus saving.
B) income
Q5: In the very short term, in the
Q13: According to the Keynesian theory, the typical
Q14: The components of aggregate expenditure include
I. imports.
II.
Q15: Disposable income is divided into
A) consumption and
Q15: In the Keynesian model of aggregate expenditure,
Q16: The consumption function relates the consumption expenditure
Q17: Saving equals
A) disposable income minus taxes.
B) disposable
Q18: A consumption function shows a
A) negative (inverse)
Q19: Disposable income is equal to
A) consumption expenditure
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