The Increase in Income in Response to a Fiscal Expansion

question 122

Multiple Choice

The increase in income in response to a fiscal expansion in the IS-LM is:

• A) always less than in the Keynesian-cross model.
• B) less than in the Keynesian-cross model unless the LM curve is vertical.
• C) less than in the Keynesian-cross model unless the LM curve is horizontal.
• D) less than in the Keynesian-cross model unless the IS curve is vertical.

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Definitions:

Distribution Facilities

Warehouses or storage sites where goods are held before they are distributed to the final customer.

Intermittent Processes

Operations or production processes that are not continuous but occur at irregular intervals.

Labor Intensity

The degree to which a process or industry relies on human labor rather than automation or machinery.

Professional Services

Services offered by businesses to other organizations or professionals, which require specialized knowledge, skills, and often involve certification or licensing.