In a Simple Macro Model with the Price Level Assumed

question 97

Multiple Choice

In a simple macro model with the price level assumed to be constant,a change in firms' level of desired investment is predicted to influence equilibrium national income by

• A)shifting the saving function.
• B)shifting the consumption function.
• C)shifting the aggregate expenditure function.
• D)causing movement along the investment function.
• E)shifting the 45-degree line.

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Definitions:

Dependent Variable

The variable in a study or experiment that is expected to change in response to changes in another variable, called the independent variable.

Proficiency Test

An examination designed to measure an individual's competency and skill level in a particular field or subject.

Predictor

A variable used in statistical models to forecast outcomes or trends.

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