The Equilibrium Condition in the Keynesian-Cross Analysis in a Closed

question 104

Multiple Choice

The equilibrium condition in the Keynesian-cross analysis in a closed economy is:

• A) income equals consumption plus investment plus government spending.
• B) planned expenditure equals consumption plus planned investment plus government spending.
• C) actual expenditure equals planned expenditure.
• D) actual saving equals actual investment.

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Definitions:

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing the gains from its operations.

Marginal Revenue

The additional income earned by selling one more unit of a product or service.

Toys

Objects designed for play, typically used by children, that can range from simple handmade items to complex electronic gadgets.

Demand Schedule

A chart displaying how much of a product consumers are ready and able to buy at different price points.