In the Simple Keynesian Model, the Economy Is in Equilibrium

question 261

Multiple Choice

In the simple Keynesian model, the economy is in equilibrium when

• A) Y = C + I and S < I.
• B) Y = C + I and S > I.
• C) Y = C + I and S = I.
• D) Y = C and S = 0.

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Definitions:

Alternative Hypothesis

A hypothesis that suggests there is a difference, relationship, or effect between two or more variables, opposite to the null hypothesis.

Mean of Scores

Calculated as the sum of all scores or values in a data set divided by the number of scores, representing the average.

One-Tailed

Refers to a hypothesis test in statistics that specifies the direction of the difference or relationship expected between variables, either greater or less, but not both.

Null Hypothesis

A default hypothesis that there is no effect or no difference, and any observed differences in the data are due to chance.