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.

---

Definitions:

Accrued Asset

An asset that represents revenues or incomes that have been earned but not yet received in cash or recorded.

Fiscal Period

A specific time period for which a business conducts financial accounting and reporting, often a year, split into quarters or months.

Accrued Expense

Expenses that have been incurred but not yet paid, recognized in the period they occur rather than when payment is made.

Computer Technician

A professional responsible for the maintenance, repair, and proper functioning of computer hardware and software.