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:

Self-Actualization

The accomplishment of realizing one's full capabilities and potential, seen as an intrinsic aspiration or necessity among all humans.

Appraisal Theory

A theory in psychology that suggests emotions are derived from an individual's evaluation (appraisal) of a situation in terms of how it impacts their well-being.

Theories of Emotion

Encompass various psychological theories explaining how human emotions are generated, including the roles of physiological arousal, cognitive processes, and environmental stimuli.

Somatic

Relating to or affecting the body as distinguished from the mind or spirit.