The Keynesian model of aggregate demand includes: I. government purchases and taxes.
II) consumer spending and investment spending.
III) exports plus imports.
A) I only
B) I and II only
C) II and III only
D) I, II, and III

Question

Quizplus · Accepted Answer

The Keynesian model of aggregate demand includes all three components: government purchases and taxes (which influence government spending), consumer spending and investment spending (which are direct components of aggregate demand), and the net exports (exports minus imports), not exports plus imports as stated, but it's understood that trade impacts aggregate demand.

The Keynesian Model of Aggregate Demand Includes: I