According to the Keynesian-Cross Analysis, When There Is a Shift

question 40

Multiple Choice

According to the Keynesian-cross analysis, when there is a shift upward in the government-purchases schedule by an amount ∆G and the planned expenditure schedule by an equal amount, then equilibrium income rises by: one unit.

• A)∆G.
• B)∆G divided by the quantity one minus the marginal propensity to consume.
• C)∆G multiplied by the quantity one plus the marginal propensity to consume.

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Definitions:

Advertising Schedule

A plan that outlines when and where advertisements will be displayed or broadcast to maximize visibility and effectiveness.

Media Planning

The process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience.

Media Mix

The combination of different types of media (digital, print, TV, etc.) used in a marketing strategy to reach the target audience.

Flighting

An advertising scheduling strategy that involves alternating periods of advertising activity and inactivity.