In the Very Short Term, in the Keynesian Model, Which

question 221

Multiple Choice

In the very short term, in the Keynesian model, which of the following is fixed and does not change when GDP changes?

• A) planned consumption
• B) planned investment
• C) planned imports
• D) All of the above answers are correct

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers.

Income Effect

That part of an increase (decrease) in amount consumed that is the result of the consumer’s real income being expanded (contracted) by a reduction (rise) in the price of a good.

Candy Bars

Candy bars are confectionery items commonly consisting of a chocolate coating or shell filled with ingredients like nuts, caramel, or nougat.

Butter Consumption

Refers to the amount of butter used or eaten by individuals or within a specified community or demographic.