The Order for the Chain of Events for the Keynesian

question 12

Multiple Choice

The order for the chain of events for the Keynesian model is for a change in to lead to a change in__________ , which is then multiplied resulting in___________a change in __________.

• A) business confidence; investment; real GDP
• B) investment; animal spirits; the price level
• C) the Fedʹs intermediate targets; the Fedʹs goals; real GDP
• D) real GDP; income; consumption

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Definitions:

Arousal

A physiological and psychological state of being awake or reactive to stimuli.

Paradoxical Sleep

Another term for REM (Rapid Eye Movement) sleep, characterized by high brain activity and vivid dreaming, despite the body's muscles being in a state of paralysis.

REM Sleep

Rapid Eye Movement sleep, a unique phase of sleep characterized by vivid dreaming and paralysis of motor systems.

Autonomic Changes

Alterations in the involuntary nervous system that regulate bodily functions such as heart rate, digestive processes, and respiratory rate.