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In the Keynesian Model, a $1 Billion Increase in Autonomous

question 4

Multiple Choice

In the Keynesian model, a $1 billion increase in autonomous consumption leads to ________ in short-run equilibrium output.


Definitions:

Withdrawals

Funds or resources withdrawn from a company by its owner(s) for private purposes.

Capital Balances

The amounts recorded in a company's capital accounts, reflecting the net investment of owners or partners.

Net Income

This is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, showing the company's profitability.

Income Ratio

A financial metric that measures the amount of income generated relative to another financial metric, such as sales or assets.

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